Premier Investments Ltd. reported a decline in its first half net profit. The largest specialty clothing retailer in Australia said that the decline in H1 profit was mainly attributable to the poor show by its Portmans retail division. The shares of the company fell by 4% today after the poor first half result. This was the biggest decline of Premier shares in a day in past three months. However the company said that it is cautiously optimistic for the rest of the year.

Premier Investments Group, owner of the brands like Just Jeans, Jays Jays, Dotti, Smiggle and Peter Alexander, reported net profit of $A42.44 million in the first six months of the year, decreasing by 13.7% while net profit was reported of $A49.18 million in the same period last year.

Total sales for the first half ended January 30, 2010 were reported of $A476.4 million, increasing by 9% as total sales were posted of $A436.5 million in the previous corresponding period. The increased sales were mainly attributable to the growth in sales at its Just Group division in the period.

However, the group still believes that it will meet the guidance earlier given for the full year. Premier said to its share holders that the profit of its Just Group would be ahead of last year. The company said that it expects the retail environment to be challenging for Australian retailers in 2010.