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Pyjama-led recovery for Solomon Lew

Business

Retailer Premier Investments has posted a pyjamas-led record full-year profit, after also benefitting from rent reductions following the temporary closure of hundreds of stores during the pandemic.

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The Solomon Lew chaired company, which owns iconic brands like Smiggle and Peter Alexander, generated a record bottom-line net profit of $271.8 million, up 97.3 per cent, for the year ended July 31.

Pre-tax underlying earnings were up 80 per cent to $351.9 million, on the back of a 15.9 per cent jump in global like-for-like sales, mostly led by online activity.

“To have delivered these record results in a very difficult and volatile environment is a truly outstanding achievement,” Lew said in a statement on Thursday.

The company noted it managed to get a good rent reduction on its bricks and mortar retail stores in fiscal 2021.

Premier remains optimistic about the prospects for the second quarter in this fiscal year, despite a 9.5 per cent fall in sales in the first seven weeks due to lockdowns in NSW, Victoria and New Zealand.

It is building up stock in anticipation of a consumer buying spree once the economy opens up on the back of higher vaccination rates, expected later this year.

“We have the appropriate supply chains to support this decision and ensure we are in stock of wanted product,” Lew said.

Of its key brands, sleep and home wear outlet Peter Alexander was a stand out with sales rising by $100 million to a record $388 million.

Sales for school kids products retailer Smiggle also rose.

Premier also owns clothing brands Just Jeans, Dotti, Jacqui E, Portmans and Jay Jays.

Premier declared a final dividend for investors of 46 cents per share, taking the payout for the year to 80 cents.

-AAP

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