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PMV, PREMIER INVESTMENTS LIMITED
alonso
post Posted: Aug 15 2020, 11:55 AM
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In Reply To: nipper's post @ Aug 13 2020, 06:09 PM

An Oscar for Solly. He achieved a double award, as you noted, by reaping millions in Jobkeeper AND dunning the landlords.
Someone told me might get to continue the Jobkeeper revenue in spite of stores closed and dividends paid because there has apparently been
a reset of conditions from July 1. I don't understand it all, public service gobbledygook sends me reaching for the meds.



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"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
nipper
post Posted: Aug 13 2020, 06:09 PM
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Another one !

Five months after Solomon Lew broke down in tears to Treasurer Josh Frydenberg, distraught over having just stood down 9,000 workers, Lew's Premier Investments has flagged its expectation of record profits.

Sales at the company's various retailers plunged 18 per cent in the second half of the year due to the coronavirus pandemic, but it nonetheless expects to lift full-year earnings between 10.5 and 11 per cent.

The company has received unspecified millions in JobKeeper wage subsidies and has refused to pay commercial rents while its stores are closed during the forced pandemic lockdowns.

Lew's outpouring of emotion reportedly helped convince Frydenberg to unveil the $130 billion JobKeeper program. That wage subsidy has not only slashed Premier's costs, but the JobKeeper and JobSeeker payments have led to cashed-up Millennials spending vast sums online and in store at Premier's outlets, which include Smiggle, Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti.

Booming online sales mean Premier may struggle to requalify for JobKeeper beyond September 27.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 23 2019, 05:20 PM
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In Reply To: nipper's post @ Sep 21 2019, 08:12 PM

QUOTE
Premier Investments [rose a further] 5.5 per cent to $19.12 after rallying almost 16 per cent last week.

Macquarie upgraded the retailer to outperform, calling the result “strong” in the context of a challenging market.

Bell Potter also upgraded its rating, lifting Premier to buy from hold, citing a “materially improved outlook” for the firm’s Smiggle division and continued strength in its Peter Alexander/Apparel brands.

However, Citi downgraded the firm to sell from neutral, however, citing the sharp increase in Premier's share price after its stronger-than-expected earnings


QUOTE
In FY20 to date like-for-like sales growth is 5.2% and positive in all regions. The company’s core brands are expected to continue providing momentum in the first quarter of FY20 because of the peak in the federal government’s tax stimulus from August to October. However, Citi suspects this momentum will not be maintained and forecasts a -1.2% decline in core brands for FY20 in terms of like-for-like sales, given the strong FY19 base.

Apparel sales were up 6.9%, or 7.8% like-for-like... The Just Group brands achieved retail sales growth of 7.5% and constant currency like-for-like sales growth of 4.2% as well as a retail earnings (EBIT) margin expansion of 47 basis points. Other positive aspects include the delivery of the growth plan for Peter Alexander a year ahead of schedule, with sales up 13.3% in FY19.

Management continues to focus on ensuring a clean inventory position at the end of each period. Sourcing initiatives and disciplined markdowns are expected to improve gross margins in FY20.

Underlying growth slowed materially for Smiggle, to 1% in FY19, ex wholesale and concessions, from 23% in FY18. This was largely driven by a slowdown in the UK..

more, esp the broker views, at ... https://www.sharecafe.com.au/2019/09/23/gro...er-investments/



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 21 2019, 08:12 PM
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Premier Investments added an impressive 15% after producing a 27.7% lift in FY19 profit to $106.8 million – which caught some traders off guard given the malaise confronting most retailers.

Online spending was up by almost 32%, revenue rose 7.3% and the final dividend rose 12.1% to 37c.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 25 2019, 07:19 AM
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Playing hardball with landlords
QUOTE
Frank Lowy is the first billionaire who most think of when it comes to retail property.

Solomon Lew should be the second.

The chairman of Premier Investments and his chief executive Mark McInnes are fanatical about understanding how the retail property landscape is changing, and how its retail chains – including fashion chains Just Jeans, Peter Alexander and Portmans and stationery chain Smiggle – are going to be affected.

“We work very hard at keeping up with the market and monitoring where the landlords are spending the money and not spending the money,” Lew says.

For years he has been warning landlords that they need to wake up to the fact that rents are unsustainably high, given the shift to online retail and the intense competition that has been eating into retailer margins.

But more recently, with landlords trying to plug the empty holes left by retail chains collapsing, Lew and McInnes have noticed a new trend. Mall owners are offering reduced rents and other incentives to new entrants in the fashion category, and not extending the same deals to long-standing tenants such as Premier.

“It’s not unusual for me to get on a plane, walk a centre and find a landlord funding competitors into our space,” McInnes says, adding that his team is having “extremely concerted discussions about every single one of our sites” where this is happening.

And where landlords aren’t budging, Premier is voting with its feet. The group has shut 101 unprofitable stores in the past six years and 16 stores in the past 12 months.

Premier will soon shut the flagship Melbourne store of its Just Jeans brand on Chapel Street, where it has traded for 48 years. Its Dotti and Smiggle stores on the same strip will shut later in the year, and its flagship Just Jeans store in Adelaide, on Rundle Mall, will also shut in coming months.

McInnes emphasises this is not a plan to shrink to greatness. “It’s not our desire to close stores. Some landlords completely get it and some have got their heads stuck in sand.”

But he does say that recent store closures have actually been earnings positive, as the loss of headline revenue is offset by the drag of carrying unprofitable stores. And total sales increased across every one of its retail chains.

It’s no wonder Premier won’t hesitate to walk where it can’t get a good enough deal.

The pressure on bricks and mortar retail is, of course, a global issue, and Premier is clearly thinking hard about the property commitments it will make in the future.

No more so does this stand out than in its revised expansion plan for the Smiggle stationery chain.

Having built up strong and well-performing store networks in Australia, Asia and Britain, Lew and McInnes were looking at how to take the chain into new markets.

An old-school approach was initially planned – find great sites in great malls, establish a foothold in each market and grow from there.

But Lew and McInnes are way too smart and experienced not to read customer and property trends.

As the pair watched Smiggle’s online sales in Britain explode – they have risen from nothing to 19 per cent of total sales since 2015 – it became clear that signing up to 10-year leases in new markets might not generate the best returns for investors.

So last September, Lew and McInnes announced a new, capital-light growth plan that will see Smiggle move quickly into new markets via wholesale agreements with local retailers, new transactional websites, concessions in department stores and a broader online push.

At the announcement of Premier’s half-year results last week – net profit jumped 13 per cent to a record $88.8 million in what was perhaps the best retail result of the ASX profit season – some of the initial fruits of this labour were revealed.

In Korea, Thailand, Indonesia, Philippines and United Arab Emirates, Premier will act as a Smiggle wholesaler to local retailers, who will put the chain’s products in 100 stores from July, with more “doors” (as they are known in the trade) to come. A local retailer will also be used to take the brand into Canada. Concessions are in place in the UK, in Selfridges and Harrods, and have just opened in Singapore.

And after looking at Continental Europe for years, Premier has opted to partner with Amazon Europe to get into France, Germany, Italy and Spain.

To be clear, Smiggle will have its own site, completely controlled by Premier, inside the Amazon ecosystem. And the lessons from this European deal with Amazon could eventually help Premier plot a push into the US.

In total, Premier says it can get Smiggle to a potential customer base of 775 million much faster and cheaper than it could have if it tried to expand alone.

“These new four pathways of growth will come at a higher EBIT margin, at materially less capital and generate much higher cashflow,” McInnes says.

A slowdown in British sales due to Brexit in the recent half underscores the logic of this expansion, McInnes argues, as it will help protect Premier from bearing the brunt of future geo-political events by effectively sharing these risks with partners.

And McInnes is comfortable that Premier can ensure that its new retail partners will maintain the company’s brand integrity, revealing that all partners have contractual obligations around store presentation, products, visual merchandising and service levels.

“What we’ve been absolutely maniacally focused on is that we don’t lose our brand presence.”

There is another property-related benefit to Smiggle’s expansion strategy that Lew and McInnes are keen to highlight: That is, there will be no leases that need to go on the Premier balance sheet.

Under an accounting standards change that came into effect on January 1, companies will be required to report leases on their balance sheets as liabilities, a move designed to greatly improve the disclosure of these obligations.

Analysis of the top 100 ASX companies by Lease Accelerator estimated $100 billion of leases will come on to balance sheets during this year. Retailers, with their huge store networks, will naturally feature heavily.

The increase in liabilities will eventually be balanced out by an increase in right-of-use assets, although there will be some quirks as companies transition to this new regime, including higher interest payments and gearing.

Longer-term though, investors could see a retailer’s lease obligations as proxy for their flexibility – the bigger the commitment, the harder it could be to get out of, as consumers increasingly turn away from physical retail.
https://www.afr.com/business/retail/how-pla...20190322-p516o5



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: gulf  
 
nipper
post Posted: Mar 23 2019, 07:27 AM
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QUOTE
Premier Investments is attempting to convince investors that Smiggle's days of strong sales and earnings growth have not come to an end, even though Brexit has blunted growth in the kids stationery brand's biggest market.

Premier Investments chief Mark McInnes has blamed "disastrous" retail trading conditions ahead of Britain's exit from the European Union for a sharp slowdown in Smiggle sales in the first half of 2019.

"What's happening in the UK is a national disaster," Mr McInnes told AFR Weekend after revealing Smiggle sales grew 4.7 per cent in the January-half, the slowest pace in at least 10 years. Excluding new stores, analysts say Smiggle sales went backwards.

"No one is immune to Brexit," he said. "It's like someone in the classroom getting a cold and everyone [is] catching it."

Smiggle accounts for less than one third of Premier's sales but more than 60 per cent of its market value after growing sales 10-fold over the last 10 years. Any sign that Smiggle's stunning global success could be coming to an end might lead to a further rerating of Premier shares, which have fallen 15 per cent since the company unveiled a new "capital light" expansion plan last September..
... interesting now sales are slowing; last post we had canny management thinking of spinning it off.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Oct 2 2017, 03:25 AM
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QUOTE
Speculation that Premier Investments was looking at spinning off the Smiggle brand first emerged in 2014, when Smiggle boasted 165 stores, including eight in the UK, and sales of $105 million.

Fast-forward three years and Smiggle has eclipsed Just Jeans as Premier's biggest brand, with 297 stores, including 102 in the UK, and sales of $239 million.

More than 50 per cent of stores are now outside Australia and the brand, known for its colourful stationery and childrens lunch boxes, is pushing into Continental Europe for the first time this year after setting up shop in Singapore, Malaysia, New Zealand and the UK. Sales are expected to reach $400 million by 2020.

Premier Investments' net profit for the 26 weeks ended January 30 rose 0.5 per cent to $71.9 million, crimped by one fewer week of trading and $3 million in legal costs incurred in an unsuccessful attempt to stop a former chief financial officer from taking a new job at Cotton On Group.

But Premier's underlying retail earnings rose 10.6 per cent to $93 million, in line with recent guidance, as strong growth from Smiggle and Peter Alexander offset weak sales and profits in four of its five fashion brands.

Retail sales rose 7.1 per cent to $589 million, underpinned by new Smiggle and Peter Alexander stores, like-for-like sales growth of 2.1 per cent and online growth of 48 per cent.

Smiggle's sales rose 26.4 per cent to $135 million, with 33 new stores in Britain and Asia taking total stores to 272. Almost 60 per cent of Smiggle's sales now come from outside Australia, and British sales alone are expected to reach $200 million by 2019.

Sales rose 13.8 per cent at Peter Alexander and 4.7 per cent at Just Jeans, but fell almost 6 per cent at Portmans, 4 per cent at Jacqui E, 1.2 per cent at Jay Jays and 0.4 per cent at Dotti.

Mark McInnes said Smiggle set Premier apart from other listed retailers, none of which owned brands with global growth potential.
and
QUOTE
Premier's vertical business model and brand ownership would also help protect the group from Amazon's inevitable expansion in Australia, they said, dismissing a recent Credit Suisse report that earnings could fall as much as 22 per cent when Amazon established its full service offer.

"The retailers most vulnerable are those who don't own their own brands or are in commodity categories," Mr McInnes said. "We design, source and supply all our own brands and Amazon can't sell our brands if we don't sell to them."

However, Premier acknowledged there was work to do in product development after a few "bad fashion choices" in 2017. | fi




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
rog
post Posted: Mar 19 2016, 05:43 AM
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In Reply To: nipper's post @ Mar 18 2016, 12:19 PM

One of my better buys.



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With money in your pocket you are wise, you are handsome, and you sing well too.
 
nipper
post Posted: Mar 18 2016, 12:19 PM
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In Reply To: alonso's post @ Sep 21 2012, 10:28 AM

great performance by Sol and le BB

.... but verging on Hubris?
QUOTE
Solomon Lew has dubbed his juggernaut stationery and office supplies business Smiggle a future "world brand". He was speaking as his retail conglomerate Premier Investments plans to ramp up expansion in the UK, after the company's interim profit jumped on the back of the strong performance of its Smiggle and Peter Alexander brands and surging online sales.

Net profit of $71.5 million for the six months ending January 30, an increase of 26 per cent compared to the six months prior

Revenues rose 14.5 per cent to $569 million over the same period.

Like-for-like sales were up 7 per cent over the half year, with all the company's brands reporting sales growth. The company owns Smiggle, sleepwear chain Peter Alexander, Just Jeans, Portmans, Dotti and Jay Jays

Online sales surged 47.7 per cent, which the company said was "well ahead of market growth and very profitable".
QUOTE
Mr Lew said Premier Investments now stood apart from other retailers. "We are just getting better at our business, better at execution and it all comes down to the execution, the products, the sourcing, there are a number of factors which make us a standout retailer compared to the rest.'' Mr Lew described the interim profit as a "high quality result".




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
alonso
post Posted: Sep 21 2012, 10:28 AM
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Good performance by Sol & the Bad Boy. LFL sales down 7% but profit up 68%. Div 18c.

Some of the other rag traders must be scratching their heads.



--------------------
"The optimist proclaims that we live in the best of all possible worlds. The pessimist fears this is true"

"What is prudence in the conduct of every private family can scarce be folly in that of a great kingdom." Adam Smith
 
 


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