Premier Investments (ASX:PMV) share price higher on AGM update

The Premier Investments Limited (ASX:PMV) share price is on the move today after the release of its annual general meeting update…

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The Premier Investments Limited (ASX: PMV) share price is pushing higher this morning following the release of its annual general meeting update.

At the time of writing, the retail conglomerate’s shares are up 1% to $23.03.

What did Premier Investments say at its annual general meeting?

At the annual general meeting, Premier Investments’ Chairman, Solomon Lew, spoke about FY 2020, current trading conditions, and its expectations for the future.

In respect to FY 2020, Mr Lew reminded investors that Premier investments was a strong performer despite facing significant COVID-19 headwinds.

The chairman pointed out that the company delivered a 29% increase in net profit after tax to $137.8 million for the year. This was despite the fact that retail store sales were down 78.4% and global sales were down $131.1 million on the prior comparable period between 11 March to 15 May.

Trading update.

Pleasingly, the company’s positive form has continued in FY 2021.

So much so, the Premier Retail business reported record sales during the Black Friday and Cyber Monday promotional period.

This led to its global online sales for the first 18 weeks of FY 2021 increasing 70% over the same period of last year.

Outlook.

No guidance has been provided for the first half or the full year. However, Mr Lew is very optimistic on the future.

He commented: “We have strong collections of wanted product for each of our brands, we have well managed inventory, and we have already seen a very positive customer response to this season’s products, with a willingness to spend as evidenced by our recent record Black Friday and Cyber Monday trading results.”

“This, together with the re-opening of borders in Australia and the recent re-opening of our stores in England gives us reason to be optimistic during this all-important trading period,” he added.

And while he warned that the crucial season is not yet over, he believes the company is significantly better placed than its key competitors.

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Motley Fool contributor James Mickleboro 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.

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