Premier Investments lifts dividend and full-year sales but profit drops

The news: Retail giant Premier Investments has posted a fall in full-year profit despite record sales as cost-of-living pressures weigh on margins.

The numbers: Net profit for the 52 weeks to 29 July fell 4.9% to $271.1 million, despite revenue rising nearly 11% to $1.66 billion as a number of its retail brands posted record sales. The group will pay a final dividend of 60 cents a share, up from 54 cents a year ago. Premier shares were up 0.1% at $24.74 each.

The context: The retailer, whose brands include Just Jeans, Portmans, Smiggle and Peter Alexander, as well as equity stakes in Myer and appliances group Breville, warned of a challenging trading environment as shoppers face cost of living pressures. It recorded a 2% sales decline over August and September, but says it is focused on the upcoming Christmas season to drive profitability over the first half. The company last month announced a strategic review to assess the optimal future structure for the group that will maximise growth opportunities.