Premier Retail has revealed that key strategic decisions have paid off, with the business revealing strong 2H21 sales.
The retail group reported that total global sales the first 18 weeks of 2H21 ended June 05 2021 were up 70% on the comparable period of 2H20, and up 15.8% on the comparable 18 weeks of 2H19.
The Group cites investments into its supply chain and 'wanted inventory', as well as trading periods including the Easter school holidays and Mother's Day, as key contributors to its positive results.
Executive director and Premier Retail CEO Mark McInnes added that investments into eCommerce and negotiation of rental agreements also contributed to the Group's performance.
"The strategic decision taken last year by the Chairman and I to build our supply chain and significantly invest in wanted inventory for Easter, April school holidays, Mother’s Day and the winter season has ensured we are in stock, delivering strong sales and gross margin growth across all our brands.
"The Group has successfully enabled customers to shop seamlessly either online or in-store during the COVID-19 health crisis.
"This has been achieved through the long-term strategic investments made in our online capability combined with our ability to reach mutual agreements with landlords to appropriately rebase rents," he said.
Premier Retail reports that it expects FY21 EBIT for the 53 weeks ending 31 July 2021 to be in the range of $340 million to $360 million.
This range represents an increase of between 82% - 92% on the underlying FY20 EBIT of $187.2 million, and a 103% - 115% increase on the underlying FY19 EBIT of $167.3 million.
According to the business, the FY21 EBIT is being driven by; strong consumer demand for winter product across all brands; strong online sales growth and performance; grosss margin expansion with 2H21 season to date up over 380 bps on both 2H20 and 2H19; and, strong cost control culture including continuing to reach agreements with landlords that rebase the Group’s rent expense.
Premier chairman Solomon Lew added that the expected FY21 EBIT is a credit to the entire Premier Retail team.
"Throughout the devastating and ongoing COVID-19 health crisis, our absolute priority continues to be safety and wellbeing of our teams and our customers.
"The expected record FY21 EBIT result in our announcement is a great credit to the experience and dedication of our entire global Premier Retail team and our exceptional executive management, led by CEO Mark McInnes.
"The Board and I are extremely proud of our entire Premier Retail team, and their diligence during these challenging times," he said.
Additionally, during the period, Premier Retail reopened all 122 Smiggle stores in the United Kingdom and the Republic of Ireland, with stores now trading in line with expectations.
The group also closed and reopened its Victorian stores in line with government directions during the recent lockdown.