Premier Investments has released its 2H20 trading update, reporting that total global sales have declined $106.5 million (18%) to $484.2 million as a direct result of the impacts of COVID-19.
Despite the decline in retail sales, the Group's online sales continued to grow during the pandemic to deliver record earnings.
Premier's online sales for 2H20 were up $50.8 million (70%) to $123.3 million and contributed 25.5% of Premier's total 2H20 sales.
In 2H19 Premier's online channel only contributed 12.3% of total sales.
Full year FY20 online sales were $220.4 million – up 48.8% – and contributed 18.1% of the business' total FY20 sales.
Premier expects its 2H20 EBIT to be between $58 and $59 million – up between 9.7% - 11.7% compared to last year – as a result of four key factors.
These factors are; the decision to shut down global operations and the benefit of the subsequent hard cost out programs; the strong online EBIT growth; strong sales growth and significant gross margin since reopening; and, maximising the government support and wage subsidy schemes around the world.
The Group expects FY20 EBIT to be between $184 and $185 million due to the strong 2H20 results – an increase of 10.5% - 11% compared to FY19.
The business' chairman Solomon Lew has famously stated throughout the pandemic that the group would not pay rent on its closed stores.
Premier Investments expects to release its FY20 results in late September 2020.