Sep 9 (Askume) – Australia’s Prime Investors PMV (AX
Shares of the clothing and accessories retailer fell 8.1 percent to $32.35, its worst trading day since April 2, 2020. .AXJO) fell 0.8%.
Premier Retail expects global retail sales of A$1.60 billion ($1.07 billion) in fiscal 2024, slightly below the Visible Alpha consensus of A$1.63 billion and down from A$1.64 billion in fiscal 2023 , the company said in an unaudited trading update
According to E&P Capital, the company, which owns brands such as the Peter Alexander designer pyjamas brand and the Smiggle stationery brand, is expected to post an operating profit of about A$341 million in fiscal 2024, which would mean a 13% drop on the second half of this financial year.
“(The update) highlights tougher trading conditions into the second half of 2024, which is in line with what most other discretionary retailers have recently reported,” E&P retail analyst Philip Kimber wrote in a note.
Last month, department store chain Myer Holdings (MYR.AX) forecast its annual profit would fall, citing low consumer spending and store closures.
Savings have been hit by rising price pressures and an uncertain macroeconomic outlook, with consumers sharply cutting back on spending on non-essentials.
Premier Investments said earlier this year that it was committed to separating Peter Alexander and Smigel, a move first announced in late March .
However, Kimber said the company remains one of the better-positioned discretionary retailers due to its strong share price performance.
The trading update does not include its portfolio. The company will announce its FY24 results on September 25.
(USD 1 = AUD 1.4988)
