Solomon Lew's retail operation Premier Investments (ASX: PMV) has thrived on online sales during the second half to post record earnings.
The company behind Smiggle, Portmans, Peter Alexander and more says online sales and EBIT growth accelerated to deliver record earnings for the period.
As a direct result of the pandemic, including mass store closures which are ongoing, global sales were down 18 per cent year-on-year at $428.2 million.
However, the company's online sales were up 70 per cent in the half to hit $123.3 million, making up more than a quarter of the retailer's total sales during the period.
Further, full year online sales were up nearly 50 per cent on the 2019 financial year to $220.4 million and made up 18.1 per cent of the company's total full year sales.
"Premier Retail now expects 2H20 EBIT to be between $58.7 million and $59.7 million, up between $5.2 million and $6.2 million," says Premier Investments.
The company says the rise in EBIT generally can be attributed to the "very significant" online earnings growth achieved, strong sales growth generally as store reopen, and maximising the effects of government rent and wage subsidies received across its global network.
Full year earnings are now expected to land somewhere between $184.8-185.8 million, up between $17.5-$18.5 million on FY19.
"Premier Investments Limited has and continues to maintain a strong balance sheet," says PMV.
The company will release its audited FY20 results in late September 2020.
Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support