The Premier Investments Limited (ASX: PMV) share price is under pressure on Thursday morning.
In morning trade, the retail conglomerate's shares are down 2.5% to $29.45.
Why is the Premier Investments share price falling?
Investors have been selling down the Premier Investments share price on Thursday after a broad market selloff offset the release of an upbeat trading update ahead of its annual general meeting.
According to the release, the company notes that since the beginning of FY 2022, the Premier Retail business has been forced to close more than 50% of its global store network for significant periods of time due to government mandated shutdowns. This led to the company losing over 42,000 trading days so far this financial year.
Positively, over the past three weeks, Premier Retail was able to open all stores globally for the first time this financial year. Combined with a product range that is resonating well with customers, this has led to a rebound in sales. Premier Retail reported a 10.1% lift in sales over the prior corresponding period during the three weeks ending 27 November.
This ultimately means that sales during the first 17 weeks of FY 2022 are now down just 3.5% over the prior corresponding period. This is a big improvement on the 9.5% decline in sales during the first seven weeks of the financial year, as reported with its full year results release in September.
And while management acknowledges that there are some significant trading weeks ahead, it highlights that the positive customer reaction to its product provides it with confidence for the remainder of the half. Premier expects to release its half year results in late March.
The Premier Investments share price is still up 23% in 2021 despite today's decline.
