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Highlights
- Revenue Update: Sales from continuing operations dipped 1.8% to $455 million.
- Strategic Moves: New store openings for Peter Alexander and expansion in international markets.
- Future Prospects: Return of dividends expected by September 2025.
Premier Investments (ASX:PMV) has drawn attention following the release of its FY25 half-year results. The company, which now focuses on brands like Peter Alexander and Smiggle after divesting some businesses to Myer Holdings (ASX:MYR), is navigating a mixed retail environment. It also retains a significant stake in Breville Group (ASX:BRG) and various property assets.
Performance Overview
The latest financial results paint a picture of resilience amid market headwinds. Sales from continuing operations declined by 1.8% to $455 million, while earnings before interest and tax (EBIT) dropped 16% to $129.4 million. When including discontinued operations, total sales were down 2.5% at $857.8 million, with total EBIT falling 20.9% to $162 million.
Statutory net profit after tax (NPAT) also saw a decline of 34% to $117.1 million. No dividend was announced for this period, but the company indicated plans to resume payouts in September 2025.
One of the key drivers behind the decline in revenue is the challenging discretionary retail market, which particularly impacted Smiggle. However, Peter Alexander performed well, with sales (excluding the UK) rising by 6.6% to $297.7 million. Meanwhile, Smiggle's sales slipped 14.5% to $157.3 million.
Expansion and Future Growth Plans
Despite the short-term hurdles, the company remains focused on expansion. Four new Peter Alexander stores were opened during the period, exceeding expectations. Additionally, four existing stores were relocated or expanded, including a major expansion of the Chadstone store by 50%.
The company’s investment in Breville Group (ASX:BRG) continues to be a strong asset, generating $6.2 million in dividends. Its 25.4% stake in the business is now valued at $1.33 billion.
Looking ahead, Peter Alexander is set for further store growth, with plans to launch up to 10 stores in the UK over the next few years, adding to the existing three locations. The company has already opened two new stores and expanded four others in Australia and New Zealand in the second half of FY25. More than 15 additional store opportunities have been identified.
A customer loyalty program for Peter Alexander is also in development, set to launch in 2025, aiming to strengthen brand engagement.
Smiggle’s Future Plans
Smiggle is strategizing for growth in both existing and new markets. The company is considering further store openings, while also exploring offshore expansion through both company-owned stores and wholesale partnerships, including store-in-store and standalone locations.
With strong brands and expansion strategies in place, the company remains focused on long-term growth, while navigating near-term challenges. The anticipated return of dividends in 2025 also signals confidence in future performance.
