Premier Investments Ltd (ASX: PMV) shares are charging higher on Thursday morning.
At the time of writing, the ASX 200 retail stock is up 5.5% to $21.50.
This follows the release of its FY 2025 results before the market open.
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ASX 200 retail stock jumps on results day
For the 12 months ended 26 July, Premier Investments reported a 0.9% increase in retail sales to $812.2 million (excluding Peter Alexander UK).
This reflects record Peter Alexander sales of $548.0 million, up 7.7% on FY 2024, which offset a 10.7% decline in Smiggle global sales to $264.2 million.
And with Premier Retail's underlying EBIT margin coming in at 24.1%, this led to the ASX 200 retail stock reporting underlying EBIT (from continuing operations) of $195.4 million.
On the bottom line, Premier Investments posted a 31.1% increase in statutory net profit after tax to $338.2 million. This includes results from both continuing and discontinued operations, as well as impacts from significant items.
This has allowed the Premier Investments board to declare a fully franked final dividend of 50 cents per share. While this is down from 70 cents per share a year earlier, it is worth remembering that Premier Investments has transformed significantly over the past 12 months following the divestment of its Apparel Brands business.
Speaking about that transformation, Premier's chair, Solomon Lew, said:
FY25 has been a year of significant change for Premier. From working through a robust due diligence process with Myer, to completing the sale of the five-brand Apparel Brands business to Myer on 26 January 2025, to emerging as a high-margin two brand business across multiple countries – this year has been both challenging and exciting. Premier's transformation, although still ongoing, ensures that the business is best placed to maximise future opportunities and deliver for shareholders.
Premier Retail's interim CEO, John Bryce, added:
The EBIT margin of the new Premier Retail group of Smiggle and Peter Alexander remain best in class at 24.1% despite continuing cost of living pressures in all our markets. Peter Alexander continues to delight with another record full year result.
Outlook
The ASX 200 retail stock has had a mixed start to FY 2026.
During the first 6 weeks of the first half, Peter Alexander sales are up 9.2% and Smiggle sales are down 4% on the prior comparable period.
Management notes that the Smiggle sales result for this period was impacted by an isolated shipping line delay that postponed the launch of key new season Smiggle product into Australia during August 2025. One positive is that strong gross margins continued to be delivered by both brands.
