Premier Retail 1H25 Trading Update
Key Highlights
1H25 Sales & Performance (Unaudited)
- Challenging Market Conditions:
- Customers across all global markets continue to face cost-of-living pressures, with a strong focus on value driving spending behavior.
- Expected Sales & EBIT:
- Total Global Sales: Projected between $855 million to $865 million.
- Underlying EBIT (pre-AASB 16): Anticipated between $160 million to $165 million.
- Clean Inventory: Premier Retail expects to close 1H25 with inventory levels in line or below 1H24, ensuring efficient stock management.
Apparel Brands Performance
- Sales & EBIT Expectations:
- Global Sales: Forecast to be between $405 million to $412 million.
- Underlying EBIT (pre-AASB 16): Expected between $31 million to $35 million, reflecting a decrease of $16 million to $20 million compared to 1H24.
- Gross Margins: Percentage gross margin for Apparel Brands is anticipated to remain broadly flat year-on-year.
Exclusions:
- The update does not include performance data from Premier’s investment portfolio.
Proposed Combination with Myer Holdings Limited
General Meeting
- Date: Thursday, 23 January 2025
- Time: 11:00 AM AEDT
- Purpose: To vote on resolutions regarding the combination of Premier’s Apparel Brands business with Myer Holdings Limited (ASX: MYR).
- Board Recommendation:
- The Premier Board unanimously recommends shareholders vote in favor of the proposed resolutions.
- All Directors holding Premier shares intend to vote in favor of the resolutions.
Investor Takeaways
Premier Retail’s performance reflects a challenging retail environment as consumer spending remains cautious. While Apparel Brands’ EBIT has softened, inventory control and stable gross margins are positive indicators.
Investors should closely watch outcomes from January’s trading period, including Back-to-School sales and the General Meeting vote on the Myer-Premier Apparel Brands combination, which could significantly impact Premier’s strategic direction.
