Australian sleepwear brand Peter Alexander is the only retail subsidiary under Premier Investments to record a sales lift in the first half of FY25.
Sales for the sleepwear brand in the first half were up 6.6 per cent to $297.7 million. These numbers exclude the brand’s recent market entry into the UK at the end of last year, where it opened three stores and launched a local website.
The Peter Alexander boom wasn’t enough to lift total sales for Premier Investments, which fell in the first half by 1.8 per cent to $455 million, driven by a 14.5 per cent sales fall for its Smiggle business to $157.3 million.
Premier also revealed first half results for the five Just Group brands – including Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans – which is now managed under Myer Group following a transaction with the company earlier this year.
Just Group sales fell 3.2 per cent to $402.9 million in the first half.
Premier chairman Solomon Lew said the board considers the first half results a “credit to management in navigating very difficult times given the relative performance of competitors where trading conditions continued to be challenging.”
“Following the end of 1H25, Premier successfully completed the sale of the Apparel Brands to Myer which represents a significant development in the company’s history.
“Premier now ceases to own the Apparel Brands and no longer holds any interest in Myer shares. The Premier board considers the transaction to be good for both companies in providing Myer and the Apparel Brands with a platform for future growth in which individual Premier shareholders may participate, while also unlocking immediate value for Premier and its shareholders.”
Alongside the overall slip in sales, Premier also reported a $60 million fall in its net profit to $117 million, which includes the Apparel Brands and one-off transaction fees associated with the sale to Myer Group, as well as Premier’s shareholding interests with Breville Group and Myer Group (prior to the sale).
All seven retail brands delivered underlying earnings before interest and tax (EBIT) of $162.0 million (pre AASB16), global sales of $857.8 million and gross margin of 62.7 per cent for the half.
Premier Retail interim CEO John Bryce said the EBIT margins of the new Premier Retail group of Smiggle and Peter Alexander remain best in class, despite its customers in all markets continuing to be impacted by increased cost of living pressures.
“We are once again particularly pleased with the record half-year result of Peter Alexander,” Bryce said.
“Premier Retail’s iconic specialty retail brands of Smiggle and Peter Alexander continue to deliver exciting, innovative products to our customers with a focus on providing unique shopping experiences that delight.
“Looking ahead, Premier Retail is focused on the future growth opportunities of Peter Alexander and Smiggle with investment in new initiatives for these much-loved brands.”
For Peter Alexander, Premier has noted 15 further opportunities for both new and/or larger format stores in Australia and New Zealand in the near term. A new loyalty program is also being developed for the sleepwear brand.
For the first five weeks of the second half of FY25, Premier Retail global sales (excluding Peter Alexander UK) were up 1.8 per cent compared to the prior comparable period.