Premier, Lovisa shares tumble on weaker FY results, Smiggle MD departure
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More news: Shares in Premier Investments were down nearly 6% to $33.16 after the retail group flagged a drop in full-year sales and earnings when it reports results later this month.
However, E&P retail analyst Phillip Kimber said Premier's trading update was in line with market expectations, and highlighted that trading conditions across 2H24 were tough.
"Despite tough trading conditions across FY24, we believe that PMV is one of the better positioned Australian discretionary retailers," he said in a note.
Kimber also noted that Premier had "terminated Smiggle MD's employment", John Cheston, as he "engaged in serious misconduct" and "breached his employment terms".
Cheston resigned on 3 June, 2024, and was working through his 12 month notice period. He is due to join Lovisa as its new CEO on 4 June, 2025.
Lovisa shares tumbled 4.99% to $30.82 in early trading but over the last 12 months has rocketed 54.2%.
Premier Investments flags lower full-year earnings, sales
The news: Retail giant Premier Investments has flagged a drop in sales and earnings when it reports full-year results later this month.
The numbers: The Solomon Lew-owned retail group said unaudited figures for FY24 showed total sales of $1.60 billion and earnings before interest and tax of $341 million.
That compares to total sales of $1.66 billion in FY23, and EBIT of $357.9 million.
The context: The retail group, whose brands include Just Jeans, Portmans, Smiggle and Peter Alexander, as well as equity stakes in Myer and appliances group Breville, did not provide any reasons for the weaker performance.
However, the trading update comes after media reports of falling sales amid a tough retail environment as cost of living pressures weigh on consumers. Premier will outline full-year results on 25 September.
Premier announced in June it was in talks with department store chain Myer to take over its apparel business under a proposed all-scrip deal.
The sources: ASX announcement, E&P research
