Australia’s Premier Investments tumbles as retail brands’ forecasts miss consensus Reuters

By Archishma Iyer

(Reuters) – Shares in Australia’s Premier Investments fell 8 percent on Monday and were on track for their worst session in four years after preliminary annual results showed the brand retailer’s earnings fell short of market estimates.

The clothing and accessories retailer’s stock fell as much as 8.1 percent to $32.35, heading for its worst session since April 2, 2020. It was down 4.7 percent by 0100 GMT, while the broader benchmark fell 0.8%.

In an unaudited trading update, the company said it expected fiscal 2024 global retail sales for Premier Retail to be $US1.60 billion ($1.07 billion), well short of a visible Alpha consensus of $1.63 billion and down from $1.64 billion in FY2023. .

The company, which owns brands such as designer pajama brand Peter Alexander and stationery brand Smiggle, has forecast operating earnings for fiscal 2024 at about $341 million, implying a 13 percent decline in the second half of the fiscal year , according to E&P Capital.

“(The update) highlights trading conditions in 2H24 were tough, consistent with most other discretionary retailers reporting recently,” E&P retail analyst Phillip Kimber wrote in a note.

Last month, department store chain Myer Holdings forecast a fall in its annual profit, citing lower consumer spending and store closures.

Customers have increasingly cut back spending on discretionary items as economies are hit by high price pressures and an uncertain macroeconomic outlook.

Premier Investments said earlier this year that it continued to work on the spin-off of both Peter Alexander and Smiggle, which was first announced at the end of March.

However, Kimber said the company is one of the best-positioned discretionary retailers because of its strong share price performance.

The trading update excluded his investment portfolio. The company will announce its fiscal 2024 results on September 25.

($1 = 1.4988 Australian dollars)