Adjusting for impacts, Premier Investment’s FY21 earnings before tax was $352.4m, a 1.7% beat on Credit Suisse’s forecast and 75% year-on-year growth. The broker notes Retail earnings before tax were above the mid-point of guidance, impressive given covid restrictions.
Credit Suisse also highlighted reduced promotional activity drove a gross margin increase to 331 basis points, and the broker expects a return to pre-covid gross margin levels in FY22. Total global sales declined -9% in the first seven weeks of FY22.
The Neutral rating is retained and the target price increases to $28.74 from $26.28.
Sector: Retailing.
Target price is $28.74.Current Price is $27.63. Difference: $1.11 – (brackets indicate current price is over target). If PMV meets the Credit Suisse target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
