Home / Knowledge / News / Apparel/Garments / Gross margin increased by 53bps at Just Group
Gross margin increased by 53bps at Just Group
19
Sep '11
Premier was established as an investment company to maximise growth in capital returns to shareholders through the acquisition of controlling or strategic shareholdings in premier Australian companies with a particular concentration on the areas of retailing, importing and distributing. In August 2008 Premier was successful in obtaining control of the Just Group. Premier now owns the brands Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander, Dotti and Smiggle.


Premier Investments Limited (“Premier”) reports release of the financial results.

Group profit
– Underlying profit before tax (before one off costs) of $73.3 million, in line with recent profit guidance
– Underlying profit after tax of $51.5 million
– Reported profit after tax of $40.5 million

Comparison between FY2011 and FY2010
– FY2011 comprised 52 weeks; FY2010 comprised 53 weeks with the extra week contributing $2.3 million to the underlying profit before tax in FY2010
– FY2010 reported profit after tax also included a $16.6 million one–off tax benefit arising from the acquisition of The Just Group
– FY2011 reported profit after tax includes the one–off costs of $15.8 million ($11.0 million after tax) associated with Premier Retail (The Just Group) Strategic Review (as above)

Premier Retail (The Just Group) contribution to Premier performance:
– Total sales for the year up 1.1% on a 52 week comparable basis
– Underlying EBIT of $65.3 million, in line with recent guidance

Premier investment income up 29% pcp
– Higher interest income on cash reserves
– Strong dividend income from investment in Breville Group

Premier cash flows
– Cash flows from operation of $71.0 million
– Capex of $22.8 million
– Final earn out payment for the acquisition of Smiggle of $18.4 million

Premier balance sheet remains strong with year end
– Cash on hand of $308 million
– Inventories clean and in a strong position
– Investment in Breville worth approximately $105 million
– Franking credit pool of $229 million

Just Group
- Total sales $866m (-0.5% on FY10; +1.1% on a comparable weeks basis)
- LFL sales down 2.8% (Aust -2.0%; NZ -4.2% in NZD)
- Gross margin increased by 53bps
- CODB up 280bps
- Strategic Review Announced July 2011
- FY11 EBIT of $65.3m before one-off costs, down 22.6% on LY (down 20.3% on comparable weeks basis to FY10)
- FY11 One off costs related to the strategic review $15.8m
- FY11 EBIT $49.5m
- FY11 PBT $39.8m
- All Strategic Review initiatives on track

Geographic summary
Australia
- Total sales up 1.7%
- LFL sales down 2.0%
- Consumer spending remains soft in discretionary categories such as clothing (ABS clothing sales down 0.8% for last 12 months)
- Sales driven by markdowns and promotions to attract
customers and maintain share

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search