Premier Investments (ASX:PMV) sees its Just Group retail business to post annual net profit of $78 million to $81 million, and expects significant improvement in the year ahead.

The company's Just Group division covers Just Jeans, Jay Jays, Portmans, Jacqui E, Peter Alexander, Dotti and Smiggle brands.

In a trading update released today, Premier admitted the second half of the year to July 31 had been very difficult due to volatile retail trading.

According to the company, several positive points throughout the fourth quarter did not translate into sustained improvement.

Just Group's sales for the year are approximately $870 million, an increase of 3 per cent on the previous corresponding period.

Just Group's earnings before interest, tax and appreciation (EBITA) would range from $82 million to $86 million, while net profit would come in between $78 million and $81 million.

The Australian retail and investment company reported net profit of $82.7 million in the previous corresponding period, which covered 55 weeks due to a change in its reporting period.

Premier predicts EBITA to range from $100 million to $110 million in the 2010/11 financial year, with Just Group posed for a significantly improved performance.

"The directors anticipate a challenging Q1, with continuing improvement in Q2 and significant improvement in the second half as the business cycles the abnormal retail environment of 2H FY2010," the company said in a statement.

The performance outlook would be steered by a healthier retail environment, significant operating leverage in Just Group, a more supportive gross margin environment and continued cost management, Premier said.

The company would issue a fully franked final dividend of 18 cents per share, in line with the previous year.