Premier Investments, parent company of Just Group, boasts record profit for the full 2013 financial year as it forges ahead with ambitious growth strategies for its retail division.
The group, responsible for brands such as Just Jeans, Portmans and Peter Alexander, reported profit after tax of $174.5 million for the year ended July 27, 2013, compared to the prior year's $68.3 million profit.
Pro forma net profit before tax was $101.8 million and its pro forma net profit after tax was $75.0 million for the fiscal year 2013.
While the result included a one-off accounting reclassification gain of $105.2 million after tax, the company also cited a strong profit performance from the Premier Retail division and investment revenues as a key contributor for the overall lift.
Premier Retail profit before tax increased 9.3 per cent to $ 76.7 million for the period, despite the continued challenges in the macro environment, and total sales for the group grew 0.9 per cent to $836.4 million.
Commenting on the positive results, Premier Investments chairman Solomon Lew said the company has continued to push ahead despite market competition due to its solid growth strategy.
He added that the company remains focused on growing shareholder wealth by optimising its current business investments and seeking new opportunities.
“The retail environment in Australia remains challenging, however we continue to adapt by rejuvenating our core brands, growing uniquely positioned brands like Peter Alexander and seeking opportunities for further offshore expansion of Smiggle,” he said.
“Premier’s progress on implementing its strategic plan is very pleasing. We continue to focus on improving our core brands and achieving efficiencies whilst also investing in future growth.”
“Nothing underlines this capacity for investment more than our decision to own a new state of the art distribution centre in Australia, which will help Premier Retail to improve efficiencies and enhance its online capabilities.”
The company also revealed that part of the Premier growth strategy going forward will include an augmentation of the Peter Alexander business by 40 per cent to 50 per cent over the next three years.
The growth will be supported by a number of new store openings – six to eight new stores in high value centres each year over the next three years in core markets of Australia and New Zealand, and the development of flagship CBD locations in Melbourne, Sydney and Brisbane.
The company also flagged the roll out of a dedicated childrenswear strategy to significantly grow the category, set to commence in November this year with dedicated space in 24 stores and a major stand-alone marketing campaign.
Peter Alexander general manager Judy Coomber – formerly group general manager merchandise for Myer – will also spearhead the launch of an exclusive Myer relationship, including 10 womenswear concession stores and wholesale mens and childrenswear in 15 stores.
The company said the “rejuvenation” of its core apparel brands, including Portmans, Dotti and Jacqui E, Just Jeans, and Jays Jays is also set to continue, with Just Jeans in particular under new leadership with the appointment in August 2013 of Matthew McCormack (formerly fashion director for John Lewis in London).
The continuing growth will also be supported by a stronger supply chain network, following a company-wide review across all of the Premier Investments distribution centres and logistics operations in Australia, New Zealand and Singapore.