The independent financial analyst theScreener just lowered the general evaluation of PREMIER INVESTMENTS (AU), active in the Apparel Retailers industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date December 17, 2021, the closing price was ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
A director at Premier Investments Limited maiden bought 5,000 shares at 19.143AUD and the significance rating of the trade was 71/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the la...
A much-mooted concern of investors in the Australian retail sector is the potential of a more pronounced decline in consumer spending on account of the weak housing market or perhaps even a wider-spread slowdown in economic activity--such as a recession. Australians have been dodging the bullet for a record-breaking 106 quarters but at some point, this lucky streak must come to an end. We avoid the futile exercise of predicting the timing of the next Australian recession and we aren't forecastin...
A much-mooted concern of investors in the Australian retail sector is the potential of a more pronounced decline in consumer spending on account of the weak housing market or perhaps even a wider-spread slowdown in economic activity--such as a recession. Australians have been dodging the bullet for a record-breaking 106 quarters but at some point, this lucky streak must come to an end. We avoid the futile exercise of predicting the timing of the next Australian recession and we aren't forecastin...
No-moat-rated Premier Investments' sales growth in the first half of fiscal 2019 was broadly in line with our expectations, but the composition of the sales growth was a surprise. The core apparel brands, which have been losing market share for years, came roaring back. However, this outstanding result was largely canceled out by materially weaker sales growth of the key Smiggle brand. The slow-down in Smiggle’s sales growth outside of Asia was to such an extent management pushed out its aspir...
No-moat-rated Premier Investments' sales growth in the first half of fiscal 2019 was broadly in line with our expectations, but the composition of the sales growth was a surprise. The core apparel brands, which have been losing market share for years, came roaring back. However, this outstanding result was largely canceled out by materially weaker sales growth of the key Smiggle brand. The slow-down in Smiggle’s sales growth outside of Asia was to such an extent management pushed out its aspir...
No-moat-rated Premier Investments' sales growth in the first half of fiscal 2019 was broadly in line with our expectations, but the composition of the sales growth was a surprise. The core apparel brands, which have been losing market share for years, came roaring back. However, this outstanding result was largely canceled out by materially weaker sales growth of the key Smiggle brand. The slow-down in Smiggle’s sales growth outside of Asia was to such an extent management pushed out its aspir...
The share price of no-moat-rated Premier Investments is down some 27% from recent highs of around AUD 20 in September 2018. The shares are now trading at our unchanged AUD 14.50 fair value estimate but don’t offer a margin of safety at these levels. Premier faces significant short-term headwinds. Brexit uncertainties have been weighing on retail spending in Smiggle’s largest market, while at home in Australia all of the company’s brands are exposed to increasingly pessimistic consumer sen...
The share price of no-moat-rated Premier Investments is down some 27% from recent highs of around AUD 20 in September 2018. The shares are now trading at our unchanged AUD 14.50 fair value estimate but don’t offer a margin of safety at these levels. Premier faces significant short-term headwinds. Brexit uncertainties have been weighing on retail spending in Smiggle’s largest market, while at home in Australia all of the company’s brands are exposed to increasingly pessimistic consumer sen...
No-moat-rated Premier Investments’ underlying net profit after tax of AUD 118.1 million in fiscal 2018 was in line with our estimate of AUD 118.4 million. Weaker-than-expected second-half sales in the key Smiggle brand, owing to fallout from the upcoming Brexit, were offset by very strong performance in the mature apparel core brands, although discounting in an intensely competitive market weighed on gross margins of these sales. We maintain our long-term view that strong sales growth in the S...
Premier Investments operates an array of Australian retail apparel brands: Just Jeans, Jay Jays, Portmans, Jacqui E, Dotti, and Peter Alexander. The firm also owns Smiggle, which sells a diverse range of stationery and ancillary products. Smiggle has limited direct competitors in its geographic markets, a unique concept, and an affordable price point; collectively, these give rise to an attractive proposition. Hence, the Smiggle brand is exceptionally successful across Australia, New Zealand, an...
No-moat-rated Premier Investments’ underlying net profit after tax of AUD 118.1 million in fiscal 2018 was in line with our estimate of AUD 118.4 million. Weaker-than-expected second-half sales in the key Smiggle brand, owing to fallout from the upcoming Brexit, were offset by very strong performance in the mature apparel core brands, although discounting in an intensely competitive market weighed on gross margins of these sales. We maintain our long-term view that strong sales growth in the S...
Shares in no-moat-rated Premier Investments are screening as expensive, trading at an 18% premium to our unchanged AUD 14.50 per share fair value estimate. We continue to credit Smiggle with successfully rolling out stores in Europe and even entering two further countries in 2020, beyond those already confirmed by management. However, we think the company’s core brands, largely operating in a highly contested Australian fashion retail market, will face gradually declining sales over the next d...
Shares in no-moat-rated Premier Investments are screening as expensive, trading at an 18% premium to our unchanged AUD 14.50 per share fair value estimate. We continue to credit Smiggle with successfully rolling out stores in Europe and even entering two further countries in 2020, beyond those already confirmed by management. However, we think the company’s core brands, largely operating in a highly contested Australian fashion retail market, will face gradually declining sales over the next d...
Shares in no-moat-rated Premier Investments are screening as expensive, trading at an 18% premium to our unchanged AUD 14.50 per share fair value estimate. We continue to credit Smiggle with successfully rolling out stores in Europe and even entering two further countries in 2020, beyond those already confirmed by management. However, we think the company’s core brands, largely operating in a highly contested Australian fashion retail market, will face gradually declining sales over the next d...
In the first half of fiscal 2018, no-moat Premier Investments continued to rapidly grow its two key chains, Smiggle and Peter Alexander, and expand its EBIT margins in line with our full-year estimates. Our underlying earnings estimates are virtually unchanged, but we make a small increase in our fair value estimate of 4% to AUD 14.50 per share, adjusting for the time-value-of-money. EBIT margins widened by 47 basis points from a year prior, tracking with our full-year estimate of an increase of...
The visibility on what the end game will be for no-moat Premier Investments’ substantial shareholding in Myer is murky, but a takeover remains a possibility. Such a deal could be value-accretive for investors in Premier, depending on the potential synergies of merging the two firms and the premium Premier is willing to pay for full control of Myer, but the group’s investment proposition to investors would be altered. Adding a mature (and, on our estimates, structurally declining) department ...
Stay Underweight Consumer Discretionary and Consumer Staples. In our 2018 Australian equity market outlook, we argued that the country is in grip of a technology-driven disruption cycle that is depressing pricing power and compressing margins. In this note, we quantify and put into context the size and scope of the boom. The consumer remains constrained and the disruption to “Bricks and Mortar” retail has been particularly savage. It’s far too early to go back into this space, despite a few ...
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