Universal Store, Premier Retail pile in the profits

Universal Store, Premier Retail pile in the profits

In November alone, Australians spent $3.75 billion more at retail compared to the same pre-COVID period in 2019.

Two ASX-listed fashion retailers with a combined market capitalisation of more than $4 billion have today announced staggering sales and profit growth rates, just days after data revealed a considerable retail sales spike nationwide. 

This high growth is not even in comparison to the COVID-19 lull of 2020 either, but pre-coronavirus trading in the second half of 2019.

The larger of the two, Premier Investments (ASX:PMV) whose Premier Retail division owns such brands as Peter Alexander, Just Jeans, Portmans, Jay Jays and Smiggle, expects to report a 75-85 per cent lift in EBIT for the six months to 30 January, 2021.

The group headed up by Solomon Lew is expecting profits in the range of $221-233 million, with higher margins and a 60 per cent surge in online sales that now represent more than a fifth of revenue at $146.2 million.

Like-for-like sales in the 24 weeks to 9 January were up 18 per cent, although temporary store closures in parts of Australia, New Zealand, the UK, Ireland and Malaysia meant the total sales lift was just 5 per cent.

Meanwhile, Universal Store (ASX: UNI) expects to report an underlying EBIT growth of 61-67 per cent to $30-31 million, following a 24 per cent rise in sales.

Like Premier, Universal Store's like-for-like sales growth was higher than the overall rate - although by just 2.5 per centage points - and sales margins grew.

"Despite a significant period of disrupted trade in Melbourne and to a lesser extent Adelaide and Sydney the results delivered across the first half of FY2021 are well ahead of the results delivered in the prior corresponding period," says Universal Store CEO Alice Barbery (pictured).

"This not only highlights the ability of our team but also our agility to operate in what has been an unpredictable trading environment."

Last week, footwear retailer Accent Group (ASX: AX1) - known for such brands as Stylerunner, Hype DC and Athlete's Foot in Australia and New Zealand - announced expected EBITDA growth of 40-45 per cent to $95-98 million.

"I am delighted with the way our team has executed through the all-important November cyber events and the lead up to Christmas," the group's CEO Daniel Agostinelli said at the time.

Today's news follows the release of new Australian Bureau of Statistics (ABS) data on Monday that showed a 13.3 per cent jump in seasonally-adjusted, year-over-year retail spending in November, rising by $3.75 billion to $31.65 billion.

This followed encouraging year-on-year growth rates of 7.1 per cent in October.

From October to November, Australia's clothing, footwear and personal accessories retailers witnessed a 26.7 per cent lift in sales, while there was a 21.1 per cent rise for department stores and a 12.7 per cent increase for household goods.

As it came out of its lengthy lockdown, Victoria had by far the highest seasonally adjusted monthly rise in retail turnover at 22.4 per cent, followed by Queensland (4.5 per cent) and Tasmania (3.4 per cent).

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.

Please tick to verify that you are not a robot

 

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

Top tips for successful digital transformation
Partner Content
Digital transformation, when done well, can transform your organisation's operation...
Advertisement

Related Stories

Early-stage funding hits record high as mega-deals drop off

Early-stage funding hits record high as mega-deals drop off

Despite venture capital funding falling by a third for Australian s...

Long-term Transurban CEO departs as company posts record revenue and earnings

Long-term Transurban CEO departs as company posts record revenue and earnings

After almost 11 years at the helm of toll road operator Transurban ...

Cettire sashays to an $8m profit as luxury goods prove resilient in tough times

Cettire sashays to an $8m profit as luxury goods prove resilient in tough times

Specialist online retailer Cettire (ASX: CTT) is proving that luxur...

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

The parent company of Boost Juice is set to return to Australian ha...