Just Group a solid investment

NATIONAL: Clothing retailer Just Group has reported stronger than expected earnings for the 2009 financial year, pushing its parent company to almost double its full year profits.

Premier Investments, which acquired the group in August last year, saw net profit rise 98 per cent to $82.7 million in fiscal 2009.

Just Group's Australian and New Zealand full year sales rose four per cent to $844.9 million, with a 6.3 per cent rise in the second half. Brands under the group include Just Jeans, Portmans, Jacqui E and Peter Alexander.

Premier chairman Solomon Lew said in spite of the result, the company was cautiously optimistic about the year ahead.

"It is our view that retail conditions will continue to be uncertain with the possibility of increased unemployment, potential increases in interest rates and potential risks associated with housing valuations which would pose real challenges for consumers."

However Just Group is already trading ahead of budget for the current financial year, according to Premier. Lew said a key challenge was to ensure Portmans and Jacqui E performed as solidly as other brands in the portfolio.

Tough conditions saw the company shut down its Peter Alexander stores in the US earlier this year.