The Premier Investments Ltd (ASX: PMV) share price has plunged from the open on Monday and now trades 4.83% lower at $33.51 apiece.
Investors are selling Premier shares following the release of the trading update of its retail brands for the year ending 27 July 2024.
Let's see what the company posted.
Premier share price slides after update
It's important to note that today's announcement was just a trading update for FY24 and not its full set of accounts. The company is set to release its entire full-year results on September 25.
In the trading update, Premier Retail – which operates iconic brands like Smiggle and Peter Alexander – reported top and bottom line figures to the market.
Retail sales hit $1.60 billion, down 2.6% from FY23, whereas earnings before interest and taxes (EBIT) were reported at approximately $326 million before AASB accounting adjustments.
This represents a pre-tax margin of 20%.
Investors have reacted swiftly this morning, sending the Premier share price straight into the red in early trade.
Whilst the results leave room for interpretation of Premier's performance, they do not account for any earnings from its investment portfolio.
So they don't cover the overall financial picture. This is important to consider in a holistic view of the company.
Analysts remain split
Today's results follow a broker downgrade from CLSA last week. The firm downgraded Premier to a hold with a price target of $33.40, citing broader concerns in the retail sector.
It was especially vocal of Myer Holdings Ltd (ASX: MYR)'s mixed FY24 update and its implications for Aussie retailers.
Myer's report painted a less-than-rosy picture of the Australian retail environment, which may have dampened investor sentiment toward Premier.
This trend of mixed earnings results was observed throughout the bulk of retailers this earnings season.
According to my colleague Seb, it was "an uphill battle" for ASX retail shares.
Despite this, Bell Potter remains bullish, reaffirming its buy rating and $35.00 price target. Bell Potter analysts viewed the recent pullback in the Premier share price as a buying opportunity.
However, there's no saying in Bell Potter's view for any pullbacks in the future.
Consensus also rates the stock a buy, according to CommSec. So, despite the bullish bias, there are brokers urging caution on Premier for now.
Judging by Monday's price action so far, it seems the market agrees with this sentiment.
Foolish takeout
The Premier share price is taking a beating today after its FY24 retail trading update.
Investors will have to wait until September 25 for the company's annual report for a glimpse into its full set of accounts.
Premier shares are up 32% in the past 12 months.
