Premier Investments net profit drops on write-downs

Solomon Lew-backed Premier Investments has seen a 20.4 per cent decrease in net profit to $83.6 million for the year ending 28 July due to a $30 million write-down of impaired assets.

However, total sales grew 8.2 per cent to a record $1.18 billion – an increase of almost 8 per cent on the previous year.

“This year’s result was driven by the continued growth of Smiggle and Peter Alexander as well as positive momentum within the apparel brands,” Premier chairman Solomon Lew said.

“I am delighted to report that the online business surpassed our original 2020 target of $100 million more than two years ahead of plan, delivering sales for the year of $112.5 million – up 65 per cent on FY17.”

Lew also laid out the group’s multi-channel growth strategy for Smiggle, which achieved a record global sales of $293 million, up 22.7 per cent on FY17.

The growth strategy will aim to deliver $450 million in global Smiggle retail sales by FY20, as well as enable further growth beyond that date, through accelerated expansion in online, concession partnerships, wholesale arrangements as well as new store growth.

Sleepwear brand Peter Alexander posted record sales of  $218.7 million, 14.5 per cent ahead of the previous year, with 21 new stores opened during the period.

“We have seen significant growth of our unique brands Smiggle and Peter Alexander which benefit from in-house design, research and constant innovation,” Premier Retail chief executive Mark McInnes said.

“In our apparel brands where we foresaw increase competition, we clarified our market position and invested in product merchants. In Q4 FY18 these brands delivered sales growth of 8.1 per cent.”

Portmans posted a 17.4 per cent in sales in the second half, Jacqui E saw a 9.4 per cent lift and Just Jeans was up 3.2 per cent.

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