Key Highlights

  • Peter Alexander recorded record sales in FY26.
  • Smiggle sales continued to shrink over the year.
  • The stake in Breville Group continued to contribute profit.
  • Excluding the effects of the Apparel Brands sale to Myer, the statutory after-tax profit decline was 10.29%.

What is Premier Investments now? After selling its Apparel Brands Business to Myer, it is a smaller retail group built around two brands, Peter Alexander and Smiggle, plus a substantial shareholding in appliance maker Breville Group. The company (ASX:PMV) operates in this market. Its FY26 result, released on 24 September 2026, showed how differently those pieces are performing: Peter Alexander hit record sales, Smiggle kept shrinking, and the Breville stake continued to contribute profit.

A changed portfolio

Premier sold five Apparel Brands labels to Myer in early 2025, leaving two labels in that division. That transaction produced a large in-specie distribution to shareholders and substantial one-off profits in FY25, which complicates every year-on-year comparison. The continuing-operations comparison is therefore the more meaningful one.

FY26 results

Revenue from continuing operations: A$808.0 million, down 2.8%.

Net profit after tax from continuing operations: A$129.2 million, down 10.3%.

Net tangible assets: A$4.19 per share, down from A$4.43.

Dividends: an interim of 45 cents and a final of 36 cents, both fully franked, totalling 81 cents against 50 cents in FY25, which was affected by the in-specie distribution. The final Dividend has a Record Date of 11 December 2026 and is payable on 22 January 2027.

Peter Alexander and Smiggle

Peter Alexander, the sleepwear and lifestyle brand, delivered record sales of A$565.3 million, up 3.2%. But Peter Alexander is closing its three UK stores after sustained weak trading, with a A$7.7 million impairment, and will focus its European strategy online. That is a clear example of an overseas expansion that did not work, and it shows the cost of testing new markets.

Smiggle, the children's stationery brand, saw global sales fall 12.9% to A$230.2 million. Its store count fell from 309 at the start of FY25 to 268, as underperforming stores continue to close. Management is repositioning Smiggle toward its core 6 to 12 age group, with a relaunch planned for FY27. Chairman Solomon Lew described second-half retail conditions as "very challenging" and said both brands are better placed entering the first half of FY27. This is a management view, and the relaunch is an expectation rather than a result.

The Breville stake

Premier holds 25.2% of Breville Group (ASX:BRG). Its share of Breville's profit was A$34.8 million in FY26, and it received A$13.9 million in dividends during the year. The stake is important because it contributes a growing profit stream without being part of Premier's retail operations, and because Breville's performance can swing Premier's reported earnings.

Outlook and trading

Management focused on the Black Friday, Christmas and back-to-school period and said it believes growth can return across the portfolio. It cited its diversified portfolio, continued Investment in Breville and an encouraging Balance Sheet as supporting investment in brands, pursuing new opportunities and continuing Capital management. These are statements of intent rather than commitments with measurable targets.

Sector and competitive position

Peter Alexander competes in sleepwear, loungewear and gifts against department stores, specialty retailers and online brands, and its record sales suggest Brand strength. Smiggle operates in a niche heavily exposed to household budgets, school calendars and the popularity of particular character products, which makes it harder to sustain growth. Premier overall is exposed to discretionary spending, and the soft retail environment reported across Australian retailers is relevant context, although each retailer's results differ.

Risks and what to monitor

Smiggle's recovery: whether the relaunch stops the decline in sales and store numbers.

Peter Alexander's growth beyond Australia, now that UK stores are closing.

Consumer conditions, especially through the Christmas trading period.

Breville's performance, which affects associate income and the value of a large investment.

Capital management: the final dividend of 36 cents is lower than the interim, which suggests caution, and future payouts depend on Earnings and the balance sheet.

Comparability: one-off gains and distributions in FY25 can distort trend analysis.

Upcoming developments

The key dates are the final dividend record date of 11 December 2026 and payment on 22 January 2027, trading around Black Friday and Christmas, and the first-half FY27 result expected in early 2027, which will provide the first evidence of whether the Smiggle relaunch is working.

The takeaway

Premier's FY26 result shows a group with one growing brand, one that is being reset, and a major associate investment that adds earnings. The next year's results will indicate whether the reset succeeds.