Key Highlights

  • Premier Retail sales were $795.5 million, down 2.0%, for the 52 weeks to 25 July 2026.
  • Peter Alexander sales rose 3.2% to a record $565.3 million, while Smiggle sales fell 12.9% to $230.2 million.
  • The retail EBIT Margin fell to 22.1% from 24.1% a year earlier.
  • In the first seven weeks of FY27, like-for-like sales and Gross Profit dollars were each within 1% of the prior corresponding period.

How is Premier Investments (ASX:PMV) holding up when one of its two retail brands is setting records and the other is shrinking? According to the company's FY26 results, released on 24 September 2026, the answer is a Business with a profitable core and a clear repair job. Peter Alexander reached record sales, Smiggle continued to decline, and group profit before tax edged lower.

The result in numbers

Premier reported FY26 results for the 52 weeks to 25 July 2026. Premier Retail, which combines Peter Alexander and Smiggle, recorded sales of $795.5 million, down 2.0%. Retail EBIT before the effect of Lease accounting and excluding significant items was $175.9 million, down 10.0% from $195.4 million.

Group profit before tax, excluding significant items, was $211.1 million, down 4.2%. Statutory net profit after tax was $129.2 million. Significant items of $27.3 million included $17.0 million related to the Peter Alexander UK business and $9.1 million tied to the launch of the Peter's Dreamers loyalty program.

The retail EBIT figure was close to the roughly $176 million the company flagged in a trading update in August, which lowered an earlier indication of about $183 million given in March 2026. Premier cited challenging discretionary trading conditions at that time.

What Premier does and what drives revenue

Premier Investments owns and operates Peter Alexander, a sleepwear and lifestyle brand, and Smiggle, a stationery and school-accessories Brand aimed at children. Revenue comes from company-operated stores, online sales and, increasingly, wholesale arrangements. Online accounted for 23.3% of retail sales in FY26.

Premier also holds a 25.2% stake in appliance maker Breville Group (ASX:BRG). The company stated its Market Value at $1.08 billion on 25 July 2026, against a Balance Sheet carrying value of $384.2 million. Investors therefore weigh the retail operations alongside a significant listed holding, whose value moves independently of store trading.

Peter Alexander: growth with a loyalty engine

Peter Alexander sales rose 3.2% to a record $565.3 million. The company says like-for-like sales have been positive every year since FY17. It ended the period with 141 stores, 125 in Australia and 16 in New Zealand, after four openings and five relocations or expansions.

The Peter's Dreamers loyalty program, launched in October 2025, had more than 1.4 million members within ten months, and members contributed over 60% of brand sales. Programs of this kind can support repeat purchasing, though they also carry set-up and ongoing costs, as the $9.1 million significant item shows.

Overseas expansion has been less successful. Premier closed its three UK stores in August 2026 after FY26 UK sales of $5.9 million, citing difficult trading and a subdued UK economic outlook. Capital is being redirected towards Australia and New Zealand, online and potentially wholesale. From August 2027, the brand will return to 24 Myer stores.

Smiggle: a reset still in progress

Smiggle sales fell 12.9% to $230.2 million. Store numbers dropped to 268 at July 2026 from 309 at the start of FY25, and 352 at the pre-pandemic peak in July 2019. Of the current network, 141 stores are in Australia and New Zealand, 36 in Asia and 85 in Europe, plus a small number of concessions.

Management says its relaunch initiatives were delivered in the second half of FY26, ahead of peak trading, and the Smiggle Club loyalty program launched on 30 July 2026. Whether these measures stabilise sales remains unproven, because the results released so far show a declining trend rather than a recovery.

Margins, inventory and the balance sheet

Retail gross margin was 65.2%, down 55 basis points, while the cost of doing business rose 1.2%. Together these squeezed the retail EBIT margin to 22.1% from 24.1% a year earlier. Inventory at July 2026 was $96.7 million, down 8.9% on a year earlier, which suggests tighter stock control.

Premier held cash of $391.4 million at 25 July 2026. A final Dividend of 36 cents per share, fully franked, will be paid on 22 January 2027. Combined with the 45 cent interim, FY26 dividends total 81 cents per share. Net Debt was not disclosed in the material reviewed, so Leverage cannot be assessed here.

Current trading

For the first seven weeks of FY27, like-for-like constant-currency retail sales and gross profit dollars were each within 1% of the prior corresponding period. The company has confirmed at least five new Peter Alexander stores and one relocation or expansion for the first half of FY27, including a Sydney CBD flagship planned for October 2026.

No numerical Earnings guidance was provided. Management described the outlook for discretionary retail as challenging, a view consistent with its August update.

Risks and what to monitor

Several issues will shape the next reporting period. The first is whether Smiggle's decline narrows as new initiatives mature and the store base stabilises. The second is whether Peter Alexander can sustain growth now that the UK has been exited and the Myer concession has not yet opened.

Margin is a further point. Gross margin slipped in FY26, and retail costs continue to rise. Any further pressure from promotions, wages or freight would matter to the retail EBIT line, given that margins are already off their recent peak. Premier says it has identified more than 15 further new or larger-format store opportunities, so the pace and returns of that rollout are also worth following.

Finally, the value of the Breville holding moves with that company's share price and sits outside Premier's operating results. Investors tracking Premier will likely watch the half-year result, expected after the first half of FY27, for evidence on each of these points. The company has also said it is exploring international wholesale opportunities, which could reduce capital intensity but would add partner risk.

The sales and profit figures above are reported results; the early FY27 trading comment is an update rather than guidance, and the assessments about what to monitor are our own interpretation.