PMV which has brands such as Smiggle, Portman’s and Peter Alexander under its umbrella delivered a solid trading update in January which saw top line sales up 0.5% year on year with on-line sales up an impressive 27%. This is a company that successfully navigated COVID and we think actually improved their business during the challenging period – the top quality companies have done that and ultimately we can see 15-20% upside in the share price from here. They may be trading on 19x, a premium to many other retailers in the sector, however we feel the premium is justified given their track record.
NB: We will get a better understanding of their actual financial performance from their 1H results out this morning, on first read through both top line sales and underlying earnings look like a slight miss, however this may present an opportunity in the short term.
MM likes PMV targeting fresh highs
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