The Premier Investments Limited (ASX: PMV) share price popped into record territory this morning after the company provided a 2H21 and FY21 trading update.
In early morning trade, the company's share price jumped by 5.2% to hit a new, all-time high of $28.75. However, at the time of writing, Premier shares have retreated back to $27.37, 0.15% higher for the day so far.
Let's take a look at the latest news from Premier.
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Trading update
The Premier share price received a boost this morning after the company announced its strong trading momentum has continued into the second half of FY21.
Premier advised that total global sales for the first 18 weeks of 2H21 ended 5 June 2021 had surged 70% against the comparable period in 2H20 and was up 15.8% against the comparable 18 weeks of 2H19.
The group's upbeat trading result was driven by a particularly strong performance during the "all-important" Easter School Holiday period, alongside a record Mother's Day and May result.
Looking ahead, the company expects FY21 earnings before interest and tax (EBIT) to be in the range of $340 million and $360 million. This represents an increase of between 82% and 92% against FY20 EBIT and between 103% and 115% against FY19 EBIT.
Premier points to strong customer demand for its winter product range across all brands, continued strength in online sales and margin expansion as key drivers of its anticipated record FY21 EBIT.
It is worth taking into account that the forecasted record FY21 result comes with the assumption that retail trading conditions remain strong, with no further COVID-19-related store closures or mobility restrictions that could influence consumer shopping decisions.
Management commentary
Premier Investments executive director and CEO Mr Mark McInnes commented on the strong results:
Today's FY21 EBIT upgraded range will represent another record result for Premier's shareholders. The strategic decision taken last year by the Chairman and I to build our supply chain and significantly invest in wanted inventory for Easter, April school holidays, Mother's Day and the winter season has ensured we are in stock, delivering strong sales and gross margin growth across all our brands.
The Group has successfully enabled customers to shop seamlessly either online or in-store during the COVID-19 health crisis. This has been achieved through the long term strategic investments made in our online capability combined with our ability to reach mutual agreements with landlords to appropriately rebase rents.
Premier Investments share price snapshot
Premier Investments has released several upbeat trading announcements this year, which were followed by a pop in its share price.
On 13 January, the company released a positive 1H21 trading update that saw the Premier share price shoot as much as ~18% higher to $26.70.
Premier Investments shares jumped again on 24 March, following the release of the company's half-year results. The shares opened 8% higher on the day to $25.85 before closing 4.65% higher at $24.94.
Similarly, investors have responded positively to today's trading update, sending Premier shares into record territory.
