Highlights:

• Peter Alexander delivered record sales, while Smiggle remained the key drag on growth.
• Statutory net profit declined as weaker retail earnings and significant items weighed on FY26.
• Early FY27 trading remains broadly stable ahead of the crucial festive sales period.

FY26 Results Reflect Tough Retail Conditions

Premier Investments Limited (ASX: PMV) announced its FY26 results on 24 September 2026, reporting profit before tax excluding significant items of AU$211.1 million for the 52 weeks ended 25 July 2026. The result was 4.16% below FY25 as challenging discretionary spending conditions continued to pressure retail demand.

Premier Retail, comprising Peter Alexander and Smiggle, generated AU$795.5 million in sales. Underlying EBIT came in at AU$175.9 million, with an EBIT margin of 22.1% and gross margin of 65.2%.

Net Profit Slides in FY26

Premier’s statutory net profit after tax from continuing operations fell to AU$129.2 million, down 10.29% compared to AU$144.0 million in FY25. Profit before tax including significant items declined 10.76% to AU$185.1 million.

The result included costs associated with Peter Alexander’s UK operations, including market-entry expenses and closure-related impairments, as well as costs linked to the Peter’s Dreamers loyalty program and business separation. These items widened the gap between statutory and underlying earnings.

Peter Alexander Strength Offsets Smiggle Weakness

Peter Alexander remained the stronger brand, with sales rising 3.2% to a record AU$565.3 million. Its Peter’s Dreamers loyalty program attracted more than 1.4 million members within 10 months, with members contributing over 60% of brand sales.

Smiggle sales fell 12.9% to AU$230.2 million as management progressed with its brand reset and reduced its store network to 268 locations.

Dividend and Capital Position Remain Supportive

Premier ended FY26 with AU$391.4 million in cash, while its Breville Group investment carried a market value of about AU$1.08 billion. The Board declared a fully franked final dividend of AU$0.36 per share, taking total FY26 ordinary dividends to AU$0.81 per share.

Outlook: Peak Trading Will Be Critical

During the first seven weeks of FY27, like-for-like sales and gross profit dollars remained within 1% of the prior corresponding period. With Black Friday, Christmas, Boxing Day and Back-to-School still ahead, execution across Peter Alexander’s expansion and Smiggle’s relaunch will be central to near-term performance.

Note- All data presented is based on information available at the time of writing.

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