Why are Premier Investments shares trading higher today?
Premier Investments Ltd (ASX: PMV) shares were up more than 3% in early trade despite the company's net profit falling more than 10%.
Challenging trading conditions
The retailer, which reported its full-year results on Thursday, declared a final dividend of 36 cents per share, fully franked, which maintains its dividend yield at more than 7%, albeit on a share price that is down more than 40% over the year.
Revenue from ordinary activities came in at $808 million for the year to July 25, down 2.8%, while net profit was $129.2 million, down 10.3%.
Premier Chair Solomon Lew said the company continued to progress its growth plans for Peter Alexander and Smiggle during the year, "with significant progress made across a number of key initiatives''.
Mr Lew added:
Peter Alexander delivered another record sales performance in FY26 and successfully launched its Peter's Dreamers loyalty program, attracting more than 1.4 million members within its first 10 months of operation. At Smiggle, the key relaunch initiatives announced in March 2026 have been delivered, with the brand entering 1H27 with a refreshed product range and renewed customer proposition ahead of the critical peak trading period.
Mr Lew said discretionary retail conditions in the second half of the year were very challenging, in particular in the later months.
He added:
Despite this backdrop, we remained focused on executing our growth strategies and positioning both brands for the critical Black Friday, Christmas and Back-to-School trading period ahead. The actions taken over the past six months leave both brands better placed as they enter 1H27. Premier's diversified portfolio, including the continued strength of our investment in Breville and a strong balance sheet, provides the flexibility to invest in our brands, pursue new opportunities and continue our capital management initiatives, including the on-market share buy-back.
During the year Premier opened four new Peter Alexander stores and another five were either expanded or relocated.
The company said at least five new store openings and one relocation or expansion were confirmed for the first half of 2027, including the opening of a large flagship store in the Sydney CBD in October 2026.
Premier said the first seven weeks of the new year continued to be challenging, however sales were within 1% of the previous period on a like for like basis.
Premier Investments shares look fully-priced
RBC Capital Markets said the result was neutral for the company.
They said both Smiggle and Peter Alexander sales came in within their forecasts.
They added:
The early 1H27 trading commentary suggests to us that the Retail segment as a whole is tracking largely in line to marginally ahead of consensus, with a clean inventory position to start FY27.
RBC has a price target on Premier of $12 against $11.42 currently, up 2.3% on the day. Premier is valued at $1.78 billion.
The post Why are Premier Investments shares trading higher today? appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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