PMV +2.83%: despite a soft backdrop for retailers, Premier continues to show resilience in its earnings based on a positive update at the company’s AGM. Solomon Lew’s retail group noted cost of living pressures were having an impact on the consumer however the company had a record sales week over the ‘Black Friday’ period across their brands which include Just Jeans, Peter Alexander & Smiggle. Given the strong start to the year, Premier now expects EBIT for the 1H to be ~$200m in their retail division, 10% above consensus expectations, the caveat is that key Christmas and Back to School sales periods remain with the half-year wrapping up in January. The EBIT guideline doesn’t include contributions from their investments in Myer (MYR) and Breville Group (BRG) where Premier owns ~25% of each. Looking ahead, the market is after more commentary regarding plans to restructure the business, hoping to unlock value given the broad range of brands and investments within the company.
MM remains long and bullish PMV in the Emerging Companies Portfolio
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