Key Highlights

• Total Revenue from continuing operations was $808.0 million, down 2.8%.

• Peter Alexander, a sleepwear and loungewear brand, had sales of $565.3 million, up 3.2%.

• Premier owns 25.2% of Breville, the kitchen appliance company, and this is a large part of the group's earnings.

• For FY26, the first full year without those brands, revenue fell 2.8% and profit fell 10.3%, which suggests the remaining brands have not yet fully compensated.

Why is a retail group with a growing sleepwear Brand and a profitable stake in an appliance maker spending its attention on a struggling stationery chain? Premier Investments (ASX:PMV) reported its FY26 results on 24 September 2026, and the answer lies in the numbers: Peter Alexander is growing, Smiggle's sales fell sharply, and the group is planning a brand refresh for the core children's market. The result also marked the first full year since the sale of the Apparel Brands Business to Myer, so it is the first clean look at the retailer that Premier now is.

The FY26 result

Total revenue from continuing operations was $808.0 million, down 2.8%. Net Tangible Assets (NTA) were $4.19 per share, down from $4.43.

The Dividend was a fully franked interim of 45 cents and a fully franked final of 36 cents, a total of 81 cents. That compares with 50 cents in FY25, a year that included a large in-specie distribution, so the two years are not directly comparable. The final dividend has a Record Date of 11 December 2026 and is payable on 22 January 2027. A final of 36 cents is lower than the interim of 45 cents, which is worth noting for anyone assuming dividends are stable.

The two brands that matter

Premier's retail Earnings now come mainly from Peter Alexander and Smiggle, and their trajectories diverge.

Peter Alexander, a sleepwear and loungewear brand, had sales of $565.3 million, up 3.2%. That growth is modest, and it came alongside the decision to close the brand's three United Kingdom stores after weak trading, with an Impairment of $7.7 million. The UK closure is a sign that international expansion has not yet worked for it, at least in physical stores, and that management is willing to stop investing where results are poor.

Smiggle, a stationery and gifts brand aimed at children, had global sales of $230.2 million, down 12.9%. Management is refreshing the brand to focus on its core 6 to 12 age group, with a relaunch planned for FY27. A fall of that size in a single year is a significant erosion of the sales base.

The Breville stake

Premier owns 25.2% of Breville, the kitchen appliance company, and this is a large part of the group's earnings. In FY26 it contributed $34.8 million of associate profit and $13.9 million of dividends received, according to the summary.

This matters for how Premier is analysed. An investor in Premier is exposed to the performance of Breville, a business in a different sector with its own global consumer and Tariff risks, and the Market Price of the stake may not be reflected in the group's accounting earnings.

What the Apparel Brands sale changed

The sale of the Apparel Brands, to Myer was completed in January 2025. That transaction made Premier smaller and more concentrated: two retail brands plus an Investment portfolio. For FY26, the first full year without those brands, revenue fell 2.8% and profit fell 10.3%, which suggests the remaining brands have not yet fully compensated.

Competitive position

Peter Alexander competes in a crowded market for sleepwear, loungewear and gifts, with department stores, specialty retailers and online sellers. Its position rests on brand strength, product design and a mix of stores and online sales. Smiggle competes for children's spending against a wide variety of toys, stationery, entertainment and online options, and as children's preferences shift quickly, a brand can lose relevance. Both brands are discretionary, so Demand is tied to consumer confidence.

Risks and what to monitor

Key risks include a weaker consumer environment, Smiggle's failure to stabilise after the refresh, further international losses, Margin pressure from product costs, and dependence on Breville's performance and dividends. The lower final dividend compared with the interim suggests payouts are not guaranteed.

The items to monitor are:

- Smiggle's sales trend and the details of the FY27 relaunch, including Capital Expenditure and store changes.

- Peter Alexander's growth, particularly in Australia, and the cost savings from closing UK stores.

- Breville's results and dividend, since they flow directly into Premier's earnings.

- The half-year result and any trading updates before it.

- The final dividend payment on 22 January 2027 and capital management decisions.

Summary

Premier's FY26 result describes a group in transition. Peter Alexander grew, Smiggle shrank and is being reset, UK stores are being closed, and Breville continues to contribute meaningfully. Profit fell, the 81 cents total dividend is not comparable with FY25, and the main question is whether the FY27 Smiggle relaunch can stop the decline in that brand's sales.