The Premier Investments Limited (ASX: PMV) share price is up 12% to $17.60 today after the retailer beat analysts' forecasts with a fiscal 2019 underlying net profit before tax of $177.6 million on group revenue of $1,275.5 million.
The group also paid out a record 70 cents per share in fully franked dividends over the year on basic earnings per share of 67.2 cents. Total dividends came in 13% or 8 cents per share higher over fiscal 2018.
Analysts were right to be worried over the impact of Brexit on Premier's Smiggle stationery stores in the UK and the weak retail environment in Australia on the back of falling house prices and feeble wages growth.
"Under these conditions, retailers generally continued to discount earlier, deeper and for longer to remain competitive" noted Premier in today's announcement.
However, the Smiggle slowdown was offset by a rebound in Premier's fast-fashion apparel businesses like Just Jeans, Jay Jays, Jacqui E, Portmans and Dotti, with apparel brand like-for-like sales up a whopping 7.8%.
The group also has a $691.7 million holding in high-flying kitchen appliance business Breville Group Ltd (ASX: BRG) and a $46.9 million stake in struggling department store business Myer Holdings Ltd (ASX: MYR).
The balance sheet is rock solid with $190.3 million cash on hand and it's easy to see why this business continues to impress investors.
