Smiggle owner sees profit dip in tough retail market
The owner of major retail brands Peter Alexander and Smiggle has weathered a profit slump after sales collapsed in a market dominated by cost-of-living pressures.
Premier Investments made a net profit of $101.7 million in the six months ending January 24, a decrease of 13.1 percent compared to the first half of the previous year.
Overall sales fell 0.5 percent to $452.8 million, although pajama line Peter Alexander performed well, with sales rising almost five percent to $312.3 million.
Sales of children’s stationery network Smiggle fell 10.7 percent to $140.5 million after the number of stores decreased across the country as Premier continued to reset business.
“Peter Alexander has delivered a strong performance again… and continues to solidify its position as the country’s leading sleepwear and souvenir brand,” Prime Minister Solomon Lew said in a statement Friday.
On Smiggle, Mr Lew said Premier was trying to simplify the business with the aim of returning to growth in fiscal 2027.
The group’s underlying earnings before interest and tax reached $119.3 million, in line with the first half of the previous year.
Overall, Mr Lew said Premier was a weaker business than it was two years ago.
“In a challenging on-demand retail environment where consumers face increasing cost of living pressures, the group’s strategy remains focused on delivering value to our customers across our products and shopping experience,” Premier said.
In addition to Peter Alexander and Smiggle, it also owns approximately 25 percent of white goods manufacturer Breville.
Premier forecasts underlying earnings of approximately $183 million for fiscal 2026; This figure will be down from $195.4 million in the previous year.
The group announced that it will distribute an interim dividend of 45 cents per share, after previously paying no dividend in the first half.
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