Premier Investments has posted record sales for the financial year despite souring consumer sentiment, announcing an expansion into the Middle East for its back-to-school Smiggle brand.
The Peter Alexander, Portmans and Just Jeans owner announced global sales of $1.6 billion for the 52 weeks to July 29, up 9.7 per cent from the 52 weeks previous.
Its adjusted net profit after tax, not including some accounting adjustments to the value of its Myer and Breville investments, rose 6.4 per cent to $278.6 million.
"Premier has delivered record sales, record profit, record dividend," chairman Solomon Lew told reporters on a conference call on Thursday.
"It has done some very, very good work on relation to cost controls, rent, signed up on new leases, and just announced today our expansion into the Middle East."
Interim chief executive John Bryce said the results were delivered notwithstanding the challenging macro-economic environment and cost-of-living pressures faced by the community.
"We didn't go out and survey them as to which one's hurting them more, but certainly you've got to put over your head first, don't you? So that's mortgage and rent, is hitting everyone," he said.
"You've got to put food on the table, and supermarket prices have outgrown what anyone was hoping or expecting, nevermind putting petrol in the car.
"So it's tough on the consumer, and we're seeing that in the discretionary retail business. You've got to do those things first before you come and shop with us."
Still, Peter Alexander sales were up 11.8 per cent to $478.9 million, while Smiggle grew sales 22.4 per cent to $319.8 million, thanks in part to collaborations with Harry Potter, Minecraft, Mickey & Minnie, the AFL and the Matildas.
The group's five apparel brands - Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E - saw sales rise 4.6 per cent to $844.8 million.
Online sales dropped 4.5 per cent to $324.7 million as stores reopened from lockdowns, but were up 119.2 per cent from before the pandemic. Online sales made up almost 20 per cent of total sales.
For the first six weeks of the new fiscal year - August and into September - sales are down two per cent from a year ago, with the group focused on the key Christmas trading quarter ahead, always a crucial time.
Premier also announced on Thursday it had signed an agreement with an existing wholesale partner to expand Smiggle into the Middle East, with no investment required on Premier's part.
Three stores in the United Arab Emirates and four in Qatar are set to open before Christmas, with 13 more planned for next year across those countries plus Kuwait, Oman and Bahrain.
Sixty or more stores could be open in 10 years' time.
"Obviously, our partner is very keen," Mr Lew said.
He said Premier expected to have a final outcome of a strategic review into its businesses announced last month before next July.
The review is considering a range of options, including de-merging the companies into two or more distinct entities.
The group has plans to expand both Peter Alexander and Smiggle in the near term, and boasted that Smiggle's recent collaborations with Paw Patrol, Barbie and the All Blacks have performed ahead of expectations.
The group will pay a fully franked final dividend of 60 cents per share, up 11.1 per cent from 2021/22. For the year, Premier is paying a total dividend of $1.30, up four per cent from last year.
Premier shares were up 0.3 per cent to $24.79 just before midday.
