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Highlights

  • Decline in Sales and Profit: Continuing operations sales fell 1.8% to AU$455 million, while EBIT dropped 16% to AU$129.4 million due to a challenging retail environment.
  • Peter Alexander Expansion: The brand saw a 6.6% sales increase, with new store openings and expansion plans, including a UK market push.
  • Future Growth Strategies: Plans include loyalty program development, Smiggle’s international expansion, and a return to dividend payments in September 2025.

Premier Investments Ltd (ASX:PMV) has released its FY25 half-year results, revealing a decline in sales and earnings amid a tough retail landscape. The company, now focused on its core brands—including Peter Alexander, Smiggle, and its stake in Breville Group Ltd (ASX:BRG)—is looking ahead with expansion plans and strategic investments.

FY25 Half-Year Financial Performance

Following the sale of certain businesses to Myer Holdings Ltd (ASX:MYR), Premier Investments categorised the sold retailers as discontinued operations, while its remaining businesses form its continuing operations. The financial performance highlights include:

  • Continuing operations sales declined 1.8% year-over-year to AU$455 million.
  • Continuing operations EBIT fell 16% to AU$129.4 million.
  • Total sales (including discontinued operations) dropped 2.5% to AU$857.8 million.
  • Total EBIT (including discontinued operations) declined 20.9% to AU$162 million.
  • Statutory net profit after tax (NPAT) saw a sharp drop of 34%, landing at AU$117.1 million.
  • No dividend was declared for this period, though the company intends to resume payments in September 2025.

Premier Investments attributed the downturn in sales to a challenging discretionary retail market, particularly for Smiggle, which saw sales decline 14.5% to AU$157.3 million. However, Peter Alexander sales (excluding the UK) increased by 6.6% to AU$297.7 million.

The company’s Breville Group investment continued to be a financial pillar, yielding AU$6.2 million in dividends, with its 25.4% stake valued at AU$1.33 billion.

Growth and Expansion Plans

Despite financial setbacks, Premier Investments remains focused on store expansion and brand development. During the period, it opened four new Peter Alexander stores, with some outperforming expectations. Additionally, the company relocated and expanded four existing locations, including a 50% expansion of its Chadstone store.

Looking ahead, the company aims to increase its store footprint in Australia, New Zealand, and the UK:

  • Up to 10 new Peter Alexander stores in the UK over the next few years, supplementing the three currently open.
  • Two new stores and four expanded locations already launched in the second half of FY25.
  • More than 15 additional store opportunities identified for further expansion.

Additionally, Premier Investments is set to introduce a Peter Alexander loyalty program in 2025.

Smiggle’s Future Prospects

Despite struggling sales, Smiggle is actively identifying new store opportunities in existing markets while also exploring international expansion through both company-owned stores and wholesale partnerships.