The Premier Investments Limited (ASX: PMV) share price has edged lower in morning trade following the release of the retail group's annual general meeting presentation.
What was in the update?
As well as a long critique on the state of Myer Holdings Ltd (ASX: MYR) and its belief that management is running the department store operator into the ground, the company also provided an updated medium-term outlook for its Smiggle business.
According to the release, the continued success and international expansion of the Smiggle business means that the company expects annual sales from the stationery brand to be in excess of $450 million by FY 2020.
This would be almost double the sales the business generated in FY 2017. Previously the company had targeted annual sales of $400 million for Smiggle by FY 2020.
Elsewhere, the company has retained the sales target of the popular Peter Alexander brand at $250 million by FY 2020. In FY 2017 the sleepwear business delivered sales of $191 million.
Should you invest?
I've been very impressed at the way the company has performed in such a tough retail environment. I believe this is a testament to the quality of the company and its management and expect its growth to accelerate when trading conditions improve.
And with its shares providing a trailing fully franked 3.7% dividend, I feel it could be a great retail investment option alongside the likes of Bapcor Ltd (ASX: BAP) and Super Retail Group Ltd (ASX: SUL).
