Premier Investments Limited has revised down its FY26 underlying EBIT guidance for Premier Retail to circa $176 million from $183 million provided in March, representing a 3.8% decline. Sales for the 52 weeks to 25 July 2026 reached $795.5 million, down 2.0% on the prior year. The company attributes the shortfall to challenging discretionary retail conditions in the latter months of the period. Chairman Solomon Lew characterized the outcome as creditable given the operating environment.
The profit revision reflects underlying weakness in discretionary consumer spending, which has weighed on retailers across the sector. However, the company’s strategic initiatives are showing promise. Peter Alexander’s Peter’s Dreamers loyalty program has exceeded expectations and driven customer engagement, while Smiggle’s strategic reset to restore brand growth remains on track. The launch of The Smiggle Club loyalty program in late July represents a key milestone in repositioning the brand toward sustainable growth. These loyalty programs are critical for building recurring revenue streams and customer data in the retail sector.
A significant strategic development was the decision to exit Peter Alexander’s three bricks-and-mortar stores in the United Kingdom. While this reflects the challenging UK retail environment, the company is pursuing wholesale opportunities with international partners and will maintain an online presence. The focus is shifting to Australia and New Zealand, where Peter Alexander’s gifting and lifestyle positioning resonates more strongly. Management has confirmed at least five new store openings in the first half of 2027, including a flagship store in Sydney CBD scheduled for October 2026.
Perhaps the most encouraging development is Peter Alexander’s return to Myer as a concession partner. A Heads of Agreement will see Peter Alexander relaunch across 24 Myer stores from August 2027. This leverages department store foot traffic that standalone retail has struggled to provide. Combined with direct store expansion and loyalty program innovation, this multi-pronged approach positions Premier to offset spending weakness and drive growth.
Investors should watch for the full-year results in late September to understand the magnitude of earnings headwinds and the sustainability of profitability levels. The success of new store openings and Myer concessions in early 2027 will be critical indicators of whether these initiatives can drive a return to growth. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Premier Investments Limited (ASX: PMV)
Premier Investments Limited is a specialty retail fashion company operating a portfolio of brands including Peter Alexander, Smiggle, Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti across Australia, New Zealand, Asia, and Europe. The company sells merchandise through retail stores, online platforms, and wholesale channels, with product ranges spanning sleepwear, school products, lifestyle items, and stationery. Founded in 1987 and headquartered in Melbourne, the company employs approximately 9,000 people and operates both retail and investment business segments.
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