Retailer Premier Investments has posted a 13 per cent drop in first half profit after Delta lockdowns in Sydney and Melbourne left most of its fashion, apparel and stationery stores shut during the initial quarter.
The owner of Smiggles, Peter Alexander and Portmans brands reported net profit of $163.6 million for the 26 weeks to January 29. The comparable half a year ago had 27 weeks.
Revenue for the half year slipped 1.9 per cent to $770.3 million but earnings before interest and tax were up 5.5 per cent to $212 million.
The first half of fiscal 2022 was " one of the most challenging and unpredictable halves of the pandemic," Chairman Solomon Lew said in a statement.
"Under government mandates, stores in our largest markets were shut for most of the first quarter equating to 42,675 trading days during the period."
Despite the tepid results, the retail giant delivered a record 46 cents a share interim dividend for shareholders, drawing on its cash reserves to lift the payout by more than a third from a year earlier.
Sales at its Premier Retail fashion and apparel unit rose 0.6 per cent to $769.9 million. Its online sales jumped 27.3 per cent from a year ago to $195.4 million.
This included record sales at its sleepwear business Peter Alexander, with an 11.4 per cent increase to $227.4 million.
Smiggle sales rose 5.6 per cent to $146.3 million, after lockdowns and home schooling through the pandemic impacted the scale of the increase.
The company said the second half had opened strongly with Premier Retail's total global sales up 6.2 per cent for the first five weeks so far.
By 1045 AEDT, Premier Investments shares were down 1.0 per cent at $28.66.
