Clothing retailer PMV owns brands such as Just Jeans, Smiggle, Peter Alexander and Dotti all of which fit firmly into the discretionary spending category and the share price has traded accordingly. After mixed performances during COVID, the increasingly challenged environment is expected to weigh on sales due to consumers trading down &/or purchases being deferred across the Premier Retail brands, but if there is one retailer on the boards that has the capacity to take advantage of further weakness, it is PMV.
They currently hold ~$1.3bn of cash and liquid investments, which is around 1/3rd of the their market capitalisation, and they are very good retailers. Weakness in the sector will ultimately provide opportunity for PMV which is the reason we have stayed the course in the Emerging Companies Portfolio.
- PMV is ideally positioned to take advantage of a downturn.
MM is neutral/bullish toward PMV
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