Cost reductions have helped in driving a profit upgrade for Premier Investments, according to analysts.
Solomon Lew's Premier Investments has been a rare silver lining during COVID-19, with a forecast record profit for the 2019/20 financial year.
Analysis by UBS has revealed the strong impact from cost reductions and subsidies across its business.
Government subsidy Job Keeper offered more than a $25m tailwind for the group in 2H20, according to analysts.
UBS guidance also implied two thirds of rent was abated during the closure period.
While near-term uncertainty around trading post September is high, analysts believe Premier is well placed given its net-cash balance and asset backing.
Premier Investments announced a strong result for the second half of the year this week, despite challenging trading conditions.
As a direct result of the COVID-19 pandemic and widespread store closures, global sales were down 18% year-on-year at $428.2 million.
However, online sales soared 70% in the half to make up more than a quarter of sales during the period at $123.3 million.
Full year earnings are now expected to be between $184.8 million to $185.8 million, up between $17.5 million to $18.5 million on FY19.