Premier Investments shares dive on first-half sales decline
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More news: Premier Investments shares plunged in early trading after the retail group reported a slump in first-half global sales amid 'challenging' retail conditions.
Premier shares were down 10.4% to $29.59 at 10:30am AEDT.
Premier Investments flags 'challenging' first-half
The news: Premier Investments has flagged that retail conditions "remained challenging" throughout the first half of the financial year, as global sales tumbled during the six months to December.
The numbers: Premier said it expects first-half global sales for its retail business in the range of $855 million to $865 million, with Australian sales broadly flat year over year. This is down from global sales of $879.5 million in the previous corresponding period.
The segment's underlying EBIT is expected to be between $160 million and $165 million, down from $209.8 million in the first half of FY24.
Premier anticipates that first-half sales from its Apparel Brands business — which is set to be acquired by department store chain Myer — will be between $405 million and $412 million, a decline from $416.3 million in the previous year. Underlying EBIT is expected to be in the range of $31 million and $35 million, $16 million to $20 million less than the previous corresponding period.
The context: Premier attributed the challenging trading conditions to cost-of-living pressures across all of its retail markets, with customers remaining focused on value.
In October, Myer agreed to buy Premier's Apparel Brands business in Australia and New Zealand, comprising Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E. Premier's board of directors has unanimously recommended that its shareholders vote in favour of the deal at its general meeting on 23 January.
The source: ASX announcement
