PMV -2.49%: the retail group reported 1H numbers today which were well ahead across most metrics, however, the initial rally in its shares was sold into, ending the session lower. Sales were a ~15% beat to expectations while Retail EBIT was around 5% ahead of the market. The company’s balance sheet is in great shape with ~$400m cash along with significant investments in Myer (MYR) and Breville Group (BRG), giving the company plenty of flexibility to look at further growth through M&A while they continue to execute on their store roll-out and geographical expansion plan. The company will pay a 54cps dividend (inline) and a 16cps special dividend, both fully franked. Trading for the first 6 weeks of the new half was also strong, up 7.7% on pcp. The only issue we had with the result was lower margins, mostly as a result of their FX exposure while manageable costs were controlled well.
MM is bullish PMV, targeting ~$30
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