Premier Investments delivered FY26 results in line with guidance, posting profit before tax of $211.1 million and statutory net profit after tax of $129.2 million for the 52 weeks ended 25 July 2026. The retailer maintained momentum despite describing operating conditions in the second half as very challenging, particularly in the latter months of the year. The result underpins a final dividend of 36 cents per share, taking full year dividends to 81 cents per share, fully franked.
Premier Retail, encompassing the Peter Alexander and Smiggle brands, generated EBIT of $175.9 million on sales of $795.5 million. Peter Alexander contributed $565.3 million in sales while Smiggle contributed $230.2 million. The business maintained strong margins throughout the period, with EBIT margin of 22.1% and gross margin of 65.2%, demonstrating the brands’ pricing power and operational discipline. Cost of doing business increased only 1.2% compared to FY25, indicating the company successfully managed inflationary pressures through operational efficiencies and maintained focus on productivity.
Inventory management proved a highlight for investors. July 2026 inventory stood at $96.7 million, down $9.5 million or 8.9% compared to July 2025, signalling improved inventory turns and a clean position heading into FY27. This reduction is particularly valuable given the discretionary nature of retail, where excess stock becomes a drag on cash flow and forced markdowns can erode margins. The company entered the critical peak trading period of Black Friday, Christmas and Back-to-School with a leaner asset base.
The company continues executing growth strategies for both brands. Peter Alexander’s loyalty program, Peter’s Dreamers, attracted more than 1.4 million members within its first 10 months of operation, creating valuable customer data for targeted marketing and repeat purchase incentives. At Smiggle, the strategic relaunch announced in March 2026 has been delivered, with a refreshed product range and customer proposition entering 1H27.
Premier’s balance sheet remains strong, with cash on balance sheet of $391.4 million and a significant investment in Breville Group Limited valued at $1.08 billion at market prices, against $384.2 million on the balance sheet. This diversified portfolio provides financial flexibility for the company to invest in organic growth, pursue new opportunities and continue capital management initiatives including on-market share buybacks.
The key question for investors centres on execution through the peak trading period ahead. Discretionary retail remains under pressure, as evidenced by the challenging conditions in 2H26. However, with inventory cleaned up, fresh product offerings at Smiggle, Peter Alexander’s loyalty program now operating at scale, and the company positioned to invest for growth, the setup for FY27 appears more constructive than the closing months of FY26 suggested. Investors should monitor trading performance through the critical quarter, inventory management, and any commentary on consumer spending trends as the year progresses. This announcement is price sensitive information and has been flagged as material by the ASX.
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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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