Highlights

• Peter Alexander sales rose 3.2% to a record A$565.3 million, and its loyalty programme passed 1.4 million members.

• Smiggle sales fell 12.9% to A$230.2 million, and the chain ended the year with 268 stores.

• Statutory net profit after tax was A$129.2 million, down 10.3%, and a final Dividend of 36 cents was declared.

• Premier held A$391.4 million in cash at year end and has not announced any acquisition.

What does Premier Investments (ASX:PMV) look like now that it has sold its apparel brands? The answer from its FY26 result is a Business with two parts. One is a growing sleepwear brand, Peter Alexander. The other is Smiggle, a stationery chain that is shrinking and now being reset. Alongside them sit a large stake in Breville Group and a substantial cash balance.

Premier reported its results on 24 September 2026 for the 52 weeks ended 25 July 2026. Statutory net profit after tax was A$129.2 million, down 10.3 per cent on the prior year. Profit before tax, excluding significant items, was A$211.1 million. That figure fell about 4 per cent.

The board declared a final dividend of 36 cents per share, fully franked, payable on 22 January 2027. Total Ordinary Dividends for FY26 were 81 cents per share, fully franked. The company said this was up 62 per cent on FY25.

Two brands, very different trajectories

Premier Retail is the operating business. It had total sales of A$795.5 million in FY26, down 2.0 per cent. Gross Margin was 65.2 per cent and the cost of doing business rose 1.2 per cent. Earnings before interest and tax, on a pre-AASB 16 basis and excluding significant items, were A$175.9 million, compared with A$195.4 million a year earlier. That matched the guidance Premier had issued on 12 August 2026. Online sales made up 23.3 per cent of the total.

Peter Alexander drove most of the result. Sales rose 3.2 per cent to a record A$565.3 million. The brand's Peter's Dreamers loyalty programme passed 1.4 million members in about ten months. According to the company, members made more than 60 per cent of Brand sales. Peter Alexander had 141 stores at July 2026, and five new stores are confirmed for the first half of FY27. These include a Sydney CBD flagship that was due to open in October.

The brand will also return to Myer as a concession partner, with a relaunch in 24 Myer stores planned from August 2027. Premier sold five apparel brands to Myer in early 2025 and earned A$36.5 million in transitional services income from Myer in FY26.

Smiggle went the other way. Sales fell 12.9 per cent to A$230.2 million. The company closed stores and ended the year with 268 Smiggle stores, compared with 309 at the start of FY25. Wholesale was a bright spot, helped by agreements in the Middle East and Indonesia.

Retreat from the UK and a Smiggle refresh

The company also stepped back from Peter Alexander's UK expansion. It closed the brand's three UK stores in August 2026. It also expected closure costs of around A$9 million.

For Smiggle, the strategy is to win back older children. Its customers had drifted towards younger ages, and the reset aims to refocus on six- to 12-year-olds. Planned changes include more innovative products, selective licensing, a move into leisure and bath and body ranges, personalisation, and better Marketing and store displays. A Smiggle Club loyalty programme launched on 30 July 2026.

A flat start to FY27

Premier did not give full-year FY27 earnings guidance. It did say that in the first seven weeks of FY27, like-for-like constant-currency sales and Gross Profit dollars at Premier Retail were both within 1 per cent of the same period a year earlier. The company stressed that these weeks are a small part of first-half trading. Black Friday, Christmas and back-to-school are still ahead.

Stock may help. Inventory at July 2026 was A$96.7 million, 8.9 per cent lower than a year earlier, and management said both brands entered the half with clean inventory. That should limit the need for heavy discounting. Chairman Solomon Lew described FY26 trading conditions as very challenging, especially in the later months of the second half.

Breville stake and balance sheet

Premier's investments arm owns 25.2 per cent of Breville Group, the kitchen appliance maker. It is carried on Premier's Balance Sheet at A$384.2 million. Premier recognised Net Income of A$43.2 million from Breville in FY26. This included a A$2.3 million non-cash dilution expense.

The group also held A$391.4 million in cash at year-end. An on-market share buy-back continues. Premier has not announced any acquisition.

Risks and what to watch

The main risk is consumer demand. Both brands sell discretionary products, and Premier itself describes the environment as challenging.

Smiggle's reset is the second key test. Store numbers have already fallen sharply, and a refreshed range has yet to prove it can lift sales. Peter Alexander depends heavily on gifting seasons.

The next markers are the AGM, Black Friday and Christmas trading, and the first-half result.