The Premier Investments Limited (ASX: PMV) share price hit a record high of $18.30 this afternoon despite the apparel and children’s stationery retailer not releasing a trading update to the market since its interim report in March 2018. For the 26 weeks ended January 26 2018 Premier reported a record net profit of $78.6 million on record sales of $630.1 million.
Much of the group’s growth amidst generally soft retail trading conditions in Australia is down to the success of its Peter Alexander homeware and Smiggle children’s stationery business. Like-for-like sales growth at both these businesses has been relatively strong and new store openings are stoking momentum.
Smiggle is embarking on an ambitious international expansion program in the UK, Europe and South East Asia, while it grew sales 27% to $171 million over the most recent half year with 26 new store openings.
Investors will be eager to hear of more success when Premier reports its full year results in September 2018.
Other brands in its retail stable include Portmans, Dotti, Jacqui E and Just Jeans that have delivered mixed results at best compared to its aforementioned stars.
The group also pays a healthy dividend and has a rock solid balance sheet that includes a substantial ownership interest in Breville Group Ltd (ASX: BRG). The kitchen appliance maker’s soaring value is also supporting the Premier share price.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.