Premier Investment’s 22.5pc profit plunge after Apparel Brands sale to Myer

Record full-year sales at sleepwear brand Peter Alexander have offset a sharp fall in demand for kids stationery products at struggling Smiggle for Solomon Lew’s trimmed-down Premier Investments.

Premier was left with just the two flagship bricks-and-mortar brands after it completed the $1.2 billion sale of its Apparel Brands division — which includes Jay Jays, Just Jeans, Dotti, Jacqui E and Portmans — to department store chain Myer in January this year.

It also has a major stake in appliance maker Breville Group.

The company on Thursday reported a 31 per cent increase in statutory profit for the 12 months to July 26 this year to $338.2 million — up from $258m in FY24.

But profit from continuing operations following the sale of Apparel Brands slid 22.5 per cent to $143.9m

Peter Alexander reached sales of $548m in Australia and New Zealand. Results from its three UK stores, which open last year as Premier attempts to get a foothold in a new market, were now disclosed.

The result across all categories — women’s, men’s, children’s, plus-size and gifting — was up 7.7 per cent on the previous year, thanks to promotional activity during Mother’s Day and the end-of-financial year sales period.

“Peter Alexander continues to have a significant runway for further growth in its core markets,” Premier said.

“Four new stores and three relocations/expansions into larger formats have already been confirmed to open in 1H26 across Australia and New Zealand.

“Over 15 further opportunities have been identified for both new and/or larger format stores in Australia/New Zealand.”

But it was a different story at Smiggle, where sales tumbled 10.7 per cent, delivering $264.2m, which Premier said reflected continued cost-of-living pressures across global markets.

The sales slump improved in the second half and the company said there were optimistic signs for the “particularly challenging economic environment” in the UK in the seven weeks of the new financial year thanks to an encouraging back-to-school campaign.

“Smiggle is a global brand with a presence in over 20 countries and is well placed across all regions to rebound and maximise sales as global economic confidence returns and with the expectation that Smiggle expands into new markets utilising its well developed, multi-channel formats,” the company said.

Premier was left with just the two flagship bricks-and-mortar brands after it completed the sale of its Apparel Brands division — which includes Jay Jays, Just Jeans, Dotti, Jacqui E and Portmans — to Myer in January this year.

Mr Lew said FY25 had been a year of significant change.

“Premier’s transformation, although still ongoing, ensures that the business is best placed to maximise future opportunities and deliver for shareholders,” he said.

“Premier continues its ownership of the high margin, iconic brands of Peter Alexander and Smiggle. The team is focused on leveraging growth in existing markets and expanding the reach of both brands in new international markets over the coming years.

“In addition, Premier continues to hold its substantial investment in Breville Group Limited, strategic property ownership and significant cash reserves.”

Premier declared a final fully-franked dividend of 50¢ a share.