# PMV - Premier Investments



## System (12 September 2010)

Premier Investments Limited (PMV) is an investment company designed to maximise growth in capital returns to shareholders through the acquisition of controlling or strategic shareholdings in Australian companies with a particular concentration on the areas of retailing, importing and distributing.

http://www.premierinvestments.com.au


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## Ves (21 September 2012)

Results out today.  EBIT margin back over 10% and online sales & Smiggle seem to be tracking really well. Their Australian operations do not look as bad as many would have predicted either.

I regret not buying at lower levels, but I took the conservative route and waited for the results.  I am not sure if there is a lesson to be learnt about that.  Waiting on the sidelines for now,  I am undecided if the price has the right amount of risk / reward at these levels.


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## McLovin (21 September 2012)

Nice result. Smiggle and Peter Alexander are pretty exciting, IMO. I had a feeling this price jump would occur when the results came out, glad I got in before!

It was actually when I was having a look at BRG that I "discovered" PMV...


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## skc (21 September 2012)

McLovin said:


> Nice result. Smiggle and Peter Alexander are pretty exciting, IMO. I had a feeling this price jump would occur when the results came out, glad I got in before!
> 
> It was actually when I was having a look at BRG that I "discovered" PMV...




Smiggle is perfect for Asia. Women there from 8 to 38 love cute overpriced stationaries.

You have to give it to Sol Lew and Mark McInnes. Some people are just more nimble and creative when it comes to innovation and developing new market segments.


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## McLovin (21 September 2012)

skc said:


> Smiggle is perfect for Asia. Women there from 8 to 38 love cute overpriced stationaries.




And, amazingly, the market is apparently not highly competitive.


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## Ves (22 September 2012)

McLovin said:


> And, amazingly, the market is apparently not highly competitive.



I was also surprised by this too. SKC is not wrong about the target market, and that sort of thing is much in demand iamongst Asian adolescents especially from the "skuttlebutt" I have done at local shopping centres.

I also like the fact that they are trying to increase their online sales channel, and it actually seems to be gaining momentum if the early results are anything to go on.


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## craft (10 December 2012)

PMV investing in a successful franchise 

http://www.asx.com.au/asxpdf/20121130/pdf/42bmkg2g0d0f66.pdf

Sol Lew was certainly swinging at the Gov’t LVT policy at the AGM this year – He does have a point.



> No Australian online business is capable of reaching its full potential while a flawed twotiered
> tax system remains in place.


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## Ves (10 December 2012)

craft said:


> Sol Lew was certainly swinging at the Gov’t LVT policy at the AGM this year – He does have a point.



I thought his address and underlying message was fantastic.  He certainly is a straight-shooter.


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## JTLP (10 December 2012)

craft said:


> PMV investing in a successful franchise
> 
> http://www.asx.com.au/asxpdf/20121130/pdf/42bmkg2g0d0f66.pdf
> 
> Sol Lew was certainly swinging at the Gov’t LVT policy at the AGM this year – He does have a point.




I'm sorry but Solomon Lew is an absolute goose.

I love how everybody was chirpy when the Australian dollar couldn't buy a thread of fabric from overseas - and they were happy charging $100 for a t-shirt that costs $1 to make in China. We got ripped so badly for so long that I quite enjoy watching these overpriced retailers squirm and go under. 

Apologies if you work in the retail industry - but if I were you I'd do 1 of 2 things:
A) Look for a new job in a hurry
B) Tell your boss/product manager to start being smarter with their costs or they can say bye bye.

End rant.


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## Ves (10 December 2012)

JTLP said:


> I quite enjoy watching these overpriced retailers squirm and *go under*.



Wrong thread, I take it?


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## prawn_86 (10 December 2012)

Ves said:


> I thought his address and underlying message was fantastic.  He certainly is a straight-shooter.






craft said:


> Sol Lew was certainly swinging at the Gov’t LVT policy at the AGM this year – He does have a point.




If it was just a matter of 10% then im sure most people would still shop in Aus stores. Intersting to note that well over 50% of all online sales are from Australian websites. Personally when i shop on ebay i prefer to buy from an Aussie ebay store than an overseas one. But i would much rather by from an ebay store with no service than a physical retail store with no service

Retailers like Lew and Harvey just love whinging because their glory days are gone and they cannot adapt, they would rather just complain.

If they really wanted to do something they would improve their customer service and/or negotiate lower rents, costs etc. 

I'm with JTLP on this one


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## craft (10 December 2012)

JTLP said:


> I'm sorry but Solomon Lew is an absolute goose.




I sense you don’t like the messenger – not sure that you have got Lew pegged correctly but that's just my opinion and unimportant in relation to the message.



JTLP said:


> I love how everybody was chirpy when the Australian dollar couldn't buy a thread of fabric from overseas - and they were happy charging $100 for a t-shirt that costs $1 to make in China. We got ripped so badly for so long that I quite enjoy watching these overpriced retailers squirm and go under.
> 
> Apologies if you work in the retail industry - but if I were you I'd do 1 of 2 things:
> A) Look for a new job in a hurry.



 Yep - there's plenty of stuff in OZ for you to go and dig up. (for now)







JTLP said:


> B) Tell your boss/product manager to start being smarter with their costs or they can say bye bye.



 The tax regeigm is part of the cost base.

Not sure how any entrepreneur can build an online global scale retail business to offset the traditional retail jobs lost in Aus until a more level tax regime exists.


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## McLovin (10 December 2012)

The whole GST debate seems like a lot of hot air to me. In the US if you buy something in another state you are supposed to pay the sales tax to your own state government, of course this never happens. The funny thing is that retailers there are not complaining that they are missing out on revenue. 

Having a locally based fulfillment site puts you at a big advantage, IMO. PMV will deliver within 3-5 days for free, and for $9.95 they'll do it next day. Their websites look good and they make it easy to get in touch with them if you have a question. There's more to buying online than just saving 10%.

I've got some friends who started a website from scratch and are now selling almost $100m/year. They're not usually the cheapest but they offer great customer service and so people come back to them time and time again. IMO, you fundamentally misunderstand why people are using the internet to shop if you think it's solely driven by price.


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## craft (11 December 2012)

McLovin said:


> The whole GST debate seems like a lot of hot air to me. In the US if you buy something in another state you are supposed to pay the sales tax to your own state government, of course this never happens. The funny thing is that retailers there are not complaining that they are missing out on revenue.
> 
> Having a locally based fulfillment site puts you at a big advantage, IMO. PMV will deliver within 3-5 days for free, and for $9.95 they'll do it next day. Their websites look good and they make it easy to get in touch with them if you have a question. There's more to buying online than just saving 10%.
> 
> I've got some friends who started a website from scratch and are now selling almost $100m/year. They're not usually the cheapest but they offer great customer service and so people come back to them time and time again. IMO, you fundamentally misunderstand why people are using the internet to shop if you think it's solely driven by price.




The internet has enabled innovation and broken down barriers to entry in many good ways for aspiring retailers.  However I still think the tax point is relevant to price sensitive type retail. Just look at books for example – Book Depository  – free delivery on even 1 book, and they’re here in a few days. How are you even meant to start competing with that if not on a level playing field. Some product is just suited to a lowest cost model and that seems to be all migrating to international sites. 

Additionally attack is probably the only form of defence here – If PMV has got international online aspirations for their brands, then tidying up the backyard playing field is imperative in building a strong launch pad.


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## McLovin (11 December 2012)

craft said:


> The internet has enabled innovation and broken down barriers to entry in many good ways for aspiring retailers.  However I still think the tax point is relevant to price sensitive type retail. Just look at books for example – Book Depository  – free delivery on even 1 book, and they’re here in a few days. How are you even meant to start competing with that if not on a level playing field. Some product is just suited to a lowest cost model and that seems to be all migrating to international sites.




IMO, any tax advantage they have is lost in fulfilment costs, hence my comment about being locally based. Amazon (which owns Book Depository), for example, has fulfilment costs that are ~10% of product sales revenue. Most of their revenue would come from their US operations and their European operations, in both regions they have fulfilment warehouses. I'd take a punt and say the cost of shipping to somewhere outside their specialised distribution area is >10%. They're price local suppliers out because of their scale and because they've targeted commodity type products like books.

PMV control their own product, which puts them at an advantage. I also think McInnes learnt his lesson at DJS when he shut down their online presence in 2005. That sort of decision making tends to reflect the way much of retailing saw/sees the internet. They really don't seem to "get" it.


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## McLovin (11 December 2012)

They must have been reading this thread!

http://www.smh.com.au/business/jumb...ne-shops-target-australia-20121211-2b6vu.html


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## prawn_86 (11 December 2012)

McLovin said:


> They must have been reading this thread!
> 
> http://www.smh.com.au/business/jumb...ne-shops-target-australia-20121211-2b6vu.html




Usually i take comments on mainstream news sites with a grain of salt, but its interesting to see that most people commenting on that article say they will continue to shop overseas if prices rise by the GST (10%). I am the same.

Usually if i can get somehting within 20% locally i will do that, otherwise i am happy to buy online (be it from an Aus or o/s store)


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## JTLP (11 December 2012)

McLovin said:


> The whole GST debate seems like a lot of hot air to me. In the US if you buy something in another state you are supposed to pay the sales tax to your own state government, of course this never happens. The funny thing is that retailers there are not complaining that they are missing out on revenue.
> 
> Having a locally based fulfillment site puts you at a big advantage, IMO. PMV will deliver within 3-5 days for free, and for $9.95 they'll do it next day. Their websites look good and they make it easy to get in touch with them if you have a question. There's more to buying online than just saving 10%.
> 
> I've got some friends who started a website from scratch and are now selling almost $100m/year. They're not usually the cheapest but they offer great customer service and so people come back to them time and time again. IMO, you fundamentally misunderstand why people are using the internet to shop if you think it's solely driven by price.




Many factors go in to a successful company - I agree - with service being a major part. However; if I don't have to deal with some 20 year old store assistant asking me "what's rocking on the weekend" and making the worst small talk imaginable + it saves me a few bucks but the service may be a little slower - I'll still do it.

TBH I think a lot of retailers don't have the right mix when it comes to sales - if you sat down and did a full 6P analysis on many of them (I'm targetting clothing here) you would find a lot of them lack in the 'price' and 'proposition' departments


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## McLovin (11 December 2012)

JTLP said:


> Many factors go in to a successful company - I agree - with service being a major part. However; if I don't have to deal with some 20 year old store assistant asking me "what's rocking on the weekend" and making the worst small talk imaginable + it saves me a few bucks but the service may be a little slower - I'll still do it.
> 
> TBH I think a lot of retailers don't have the right mix when it comes to sales - if you sat down and did a full 6P analysis on many of them (I'm targetting clothing here) you would find a lot of them lack in the 'price' and 'proposition' departments




I'm not saying that price is irrelevant, it's just that Australian retailers seem to view price as the _only_ reason someone buys online (I bang on about this all the time but the HVN website is testament to that line of thinking). It's basically the same sort of thinking that was around in 1999 "on the internet you can do everything cheaper but the customer experience is worse". Or that the only people who shop online are cheapskates looking to buy things at half price.

They spend so much time discussing the tax issue but 10% is really not, IMO, the central reason why people shop overseas.


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## JTLP (11 December 2012)

McLovin said:


> I'm not saying that price is irrelevant, it's just that Australian retailers seem to view price as the _only_ reason someone buys online (I bang on about this all the time but the HVN website is testament to that line of thinking). It's basically the same sort of thinking that was around in 1999 "on the internet you can do everything cheaper but the customer experience is worse". Or that the only people who shop online are cheapskates looking to buy things at half price.
> 
> They spend so much time discussing the tax issue but 10% is really not, IMO, the central reason why people shop overseas.




Apologies if I've come across differently - I agree 100% with what you're saying above (especially the last sentence). Interestingly, Zara and TopShop are pretty much always busy for a bricks and mortars store - but this may be more about Australians loving the brands overseas and finally revelling in it in their homeland (plus you can't ship Zara direct)...


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## craft (21 March 2013)

Not a bad set of numbers.








Results re-inforce what we were talking about back here.
https://www.aussiestockforums.com/forums/showthread.php?t=23385&p=724948&viewfull=1#post724948


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## Ves (21 March 2013)

Looks pretty good on first glance.   Great cash flow, and cost management is on track as promised.

Surprised they have raised the dividend too.  Good sign in a well managed business.


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## notting (21 March 2013)

It's amazing how well this company has held up in contrast to the other retailers.


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## piggybank (26 March 2014)

notting said:


> It's amazing how well this company has held up in contrast to the other retailers.




It could be viewed as the *premier* retail stock atm

P/E Ratio = 18.48
Dividend Yield = 4.4% franking is 100%

​
If you want to look at the rest of the presentation, then click on the link:- http://stocknessmonster.com/news-item?S=PMV&E=ASX&N=404125 

Breakout from a flag pattern - but with no increase in volume.

​


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## VSntchr (26 March 2014)

I thought the result was good and got on a short term trade yesterday...but was out too soon at $8.65 

Some say you don't go broke taking a profit, but you might go :swear:


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## McLovin (27 March 2014)

piggybank said:


> It could be viewed as the *premier* retail stock atm
> 
> P/E Ratio = 18.48
> Dividend Yield = 4.4% franking is 100%
> ...




I don't think PE tells the full story. You have to remember that these guys have ~$240m net cash + an investment in BRG that is valued at ~$320m (on the books at $185m). They'll probably do somewhere between ~$90-$95m EBIT this year on the retail segment. Current MC ~1.45b - BRG holding $320m - net cash $240m = $890m. The retail business is trading at around 10x EV/EBIT. Not bad when you consider the current growth from Smiggle and Peter Alexander and that the older brands have at least stabilised.


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## piggybank (3 April 2014)

P&F Daily Update:-

​


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## ukulele (24 March 2016)

Fair to say that the market liked the report and this has well and truly broken out. Well done if you traded it, but it looks far to hot at the moment.


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## Muschu (8 February 2017)

Can't argue with today's performance --- and creation of a gap in the chart.... Value here still?


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## peter2 (5 June 2018)

Break-out today to a new yearly high for this retailer.


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## bigdog (20 September 2019)

ASX ANNOUNCEMENT TODAY
20/09/2019 8:39:01 AM  FY19 Results Announcement

*Share price up 12%  *





















792


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## Dona Ferentes (24 September 2021)

The market liked Premier Investments’ full year result, even though the outlook has been clouded by the impact of the lockdowns in NSW, Victoria and the ACT.

Shares in Solomon Lew’s main retailing venture rose 3% yesterday to $27.63 after Premier revealed a result that was a probably a bit better than thought – a 97.3% jump in consolidated net profit after tax to $271.8 million for the 53 weeks ended July 31.

That was on a more modest but still strong 18.7% rise in total sales for the year to a record $1.4 billion, with like for like (LFL) sales growth of 15.9% (in constant currency).

Final dividend was lifted 10 cents to 46 cents a share, a record, making a total for the year to 80 cents a share.

Like the closing months of the 2019-20 year, Premier once again had to battle the impact of lockdowns and outbreaks. Across its global networks, it faced temporary government mandated store closures across for 52 of the 53 trading weeks during 2020-21. 


> “_All geographic segments in which the Group operates have been affected by these temporary store closures during this financial year,"_ the company told the ASX.


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## sptrawler (31 August 2022)

I wonder if Solomon will have a tilt at David Jones and offload Myers?

David Jones sale now a possibility, reveals boss​The retailer has emerged with a slightly smaller profit but its future remains unclear as reports grow its South African parent is looking to sell the department store.


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## Garpal Gumnut (1 September 2022)

sptrawler said:


> I wonder if Solomon will have a tilt at David Jones and offload Myers?
> 
> David Jones sale now a possibility, reveals boss​The retailer has emerged with a slightly smaller profit but its future remains unclear as reports grow its South African parent is looking to sell the department store.



I doubt it.

Solly has lost skin with Myer and it is personal as well as business for him, from what the media say. 

gg


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## Dona Ferentes (30 September 2022)

Shareholders will receive a bumper dividend for 2021-22 as well as a small buyback after PMV, the owner of the Smiggle and Peter Alexander brands, reported record sales of $1.5 billion for the year to 31 July as it overcame the considerable disruption from Covid lockdowns.

The sales figures for the year are more than double of what Premier posted before the pandemic.

Premier reported that net profit for the year edged up nearly 5% to $285.2 million.


> _“This is testament to the seamless leadership transition to [chief executive] Richard Murray, the unrelenting focus on execution by our management team, and the commitment of our people_,” chair, Solomon Lew said in Thursday’s statement.




Premier shareholders will get a fully franked final dividend of *54 cents a share, plus a special dividend of 25 cents* a share – taking the total payout for the year to $1.25 per share (up 56.3% on last year).

As well the company has decided to launch a $50 million on-market share buyback, which “_recognises the significant market volatility at present and will allow Premier to opportunistically and flexibly acquire shares which will in turn deliver earnings per share accretion_”,
.


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