Premier Investments, owner of Just Group and brands such as Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander and Dotti, has reported a 2.4 per cent drop in net profit after tax to $38.5 million for the first half of the 2012 financial year.
The results, for the 26 weeks ended January 28 2012, also saw a 2.3 per cent dip in earnings before interest and tax (EBIT) for the company's retail division Just Group, to $51.3 million.
However, despite sliding sales for the Just Group overall, growth brands such as stationary label Smiggle and sleepwear brand Peter Alexander performed well, with Just Group investing in dedicated buying, planning and retail teams to assist in further expansion going forward.
Premier CEO of retail Mark McInnes revealed that plans are underway to open 30 new Peter Alexander stores in the next three years, with a “low-risk entry into the Singapore market via an online store” also on the cards for 2012, around May.
The company is also evaluating opportunity for a first Peter Alexander store to open in Asia in late 2012 or early 2013 in a flagship location.
Overall, McInnes said the interim results for the Just Group brands demonstrate the positive impact of initiatives put in place after the company's strategic review – completed in July 2011 – and flagged further changes ahead.
“Retailers in Australia are clearly facing a tough macro environment – weak consumer spending, increased competition, and rising rental and labour costs. These challenges will only continue to test the structure of the retail industry in Australia,” he said.
“In this context, developing clear proactive tactics to successfully address each of these specific challenges in critical. This has been – and will be – the primary focus for the Just Group's newly invigorated and extended senior management team. We are confident that we will see ongoing positive uptick in the group's performance as we further invest in the business and renew our focus on the business fundamentals.”
The company has found some respite in online sales, however, with the internet already Just Group's “largest store”, delivering 100 per cent sales growth for the first half. Based on these results, the company has set an internet sales target of 10 per cent of total company sales by 2015.
Premier is also set to invest in a new, internationally competitive website for its womenswear brand Dotti, with launch scheduled for the end of quarter three, this financial year.
The fresh site will feature integrated video, outlet, mobile, search and social functionality, with enhanced shopping and social services to also be rolled out to Premier's other retail brands.
McInnes said the retail division will also look to undertake a web affiliation and market place review, to be completed by the end of quarter three.
Based on the initiatives set out and taking into account “short-term headwinds facing Premier's existing retail portfolio”, the company said it expects its full year profit guidance to be at the bottom end – around $80-95 million – for Just Group EBIT.