Premier Investments has just cracked $1 billion in sales for the first time.
The retail group reported a 17.9% increase in net profit after tax of $103.9 million for fiscal 2016.
Total sales were up 10.9% to $1,049.2 million, breaking the $1 billion mark for the first time.
Premier chairman Solomon Lew said the result reflects momentum across sleepwear brand Peter Alexander, stationary destination Smiggle and online sales.
"The Premier Retail team, led by Premier Retail CEO Mark McInnes, has again delivered a very strong performance in a difficult retail environment," he said.
"The 2016 result demonstrates the continued successful implementation of the Premier Retail Strategy to drive growth through Smiggle, Peter Alexander and our online offer while rejuvenating our core brands and improving efficiencies."
While stationary brand Smiggle is the star performer, with sales up 41.8% for the year, sleepwear brand Peter Alexander is the fashion front runner.
“Peter Alexander achieved sales growth for the year of 20.4% driven by the opening of 11 new stores, strong LFL growth, innovative products and campaigns that resonate with our customers," Lew said.
"We continue to roll out new stores for Peter Alexander and invest in the in-store experience throughout our existing network.
"Once again our online sales significantly outperformed the market, with our online sales growing by 39.6%.
"We will continue to make significant investments in technology, people and marketing, to achieve annual online sales of over $100 million by 2020."
Premier Retail’s gross margin for the year was 63.9%, up 78bps on last year despite weaker Australian dollar and the warmest autumn on record.
Lew credited the result to the effective implementation of gross margin strategies.
These include:
o long range foreign currency hedging policies (in all markets) allowing for long term merchandising planning;
o direct sourcing initiatives continuing to deliver benefits from new and existing suppliers;
o sourcing from new geographies;
o investing in better merchants delivering better product;
o a focus on disciplined execution of markdown management; and significant growth from the higher margin brands Smiggle and Peter Alexander.
o Premier Retail is fully hedged for all Australia, New Zealand and United Kingdom offshore purchases for the balance of FY17 and 1H18.
o Premier Retail's inventory position was clean at year end.