The Motley Fool

Why the Premier Investments share price is soaring today

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. 

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. Each of these three companies boasts fully franked yields and could be a great fit for your diversified portfolio. You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!