Retail fashion chain operator Premier Investments Ltd
(ASX:PMV) has reported a 13.7% drop in first half profit to $42.4 million.
But the company says it is well positioned for future growth with a strong balance sheet of $325 million in cash reserves and a reduction of debt at the Just Group level.
Just Group’s sales for the 27 weeks to January 30, 2010, were up 9.3% to $473 million, thanks to strong performances from its Just Jeans, Jay Jays, Dotti, Smiggle and Peter Alexander stores.
However, sales at its Portmans chain were disappointing.
Chairman Solomon Lew says Premier is cautiously optimistic about the relative performance of Just Group given its range of brands and their broad demographic coverage.
Looking ahead, Mr Lew says the company will focus on improving Portmans’ performance to match the returns from the other brands in the Just Group portfolio.
Mr Lew says the company’s strong position will allow it to take advantage of new growth opportunities in the market.
The board has declared a fully franked dividend of 38 cents per share.
For the 12 months to July 30, 2009, Premier Investments posted a profit of $82.75 million.
