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Highlights
- Premier Investments posts 34% fall in first-half profit
- Peter Alexander delivers record sales amid broader slowdown
- Smiggle faces pressure from global cost-of-living challenges
Premier Investments (ASX:PMV) shares gained ground despite starting in the red, as the retail group revealed a mixed set of financial results marked by tough trading conditions and a strategic refocus on core brands.
At 1:20pm AEDT, shares rose 3.6% to $21.80, recovering from an early dip of nearly 1% at market open. The rebound comes even as the company reported a 34% drop in net profit for the first half of the fiscal year, falling to $117.1 million. This decline follows the sale of its Apparel Brands business and reflects what the company described as "very difficult times" in retail.
Total group sales were down 2.5% year on year, landing at $857.8 million. However, this figure includes discontinued operations. For continuing operations—now focused on the Peter Alexander and Smiggle brands—sales eased by 1.8% to $455 million.
Peter Alexander was a standout performer, recording a 6.6% increase in first-half sales to reach a record $297.7 million. The brand's strong performance provided a bright spot for the group and reflects continued demand for its product offerings, even as broader market conditions remain uncertain.
On the flip side, Smiggle experienced a 14.5% sales decline to $157.3 million. The company noted that Smiggle's performance has been especially impacted by rising cost-of-living pressures in all its international markets, highlighting the challenges facing discretionary retail spending globally.
Premier Investments (PMV) attributed the overall performance to effective management, especially when compared to peers facing similar headwinds in the retail sector. The company emphasized that it remains committed to its international expansion plans, particularly for Peter Alexander and Smiggle, focusing on growth within existing markets and entering new territories in the coming years.
Analysts noted that the reported profit included several non-recurring items, which makes direct comparisons to consensus estimates less straightforward. Despite the headline decline, the early signs of growth in the second half—particularly the 1.8% lift in sales—have been interpreted positively by market watchers.
As Premier Investments continues to adjust its portfolio and sharpen its strategic focus, attention now turns to how well its key brands can sustain momentum amid ongoing economic uncertainty.
