Peter Alexander’s parent company Premier Investments is expecting a slip in total sales for the first half of FY25, with sales for its five Just Group brands projected to be relatively flat.
Premier, which also manages accessories brand Smiggle, reported that total global sales for the first half should be in the range of $855 million to $865 million, adding that Australian sales are broadly flat on 1H24. This is down from $879.5 million in the first half of FY24, and below a peak of $905.2 million in FY23.
The total sales excludes Peter Alexander’s sales in the United Kingdom, where the brand recently entered.
The Just Group brands, consisting Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans, will deliver global sales for the first half of FY25 in the range of $405 million to $412 million, slightly down from $416.3 million in the first half of FY24.
Premier added that the underlying earnings before interest and tax (EBIT) for the five apparel brands should be in the range of $31 million to $35 million, $16 million to $20 million less than for 1H24.
“Premier expects the percentage gross margin for the Apparel Brands business to be broadly flat against the prior corresponding period,” the company reported in a trading update today.
Meanwhile, the underlying EBIT for Premier’s retail brands overall should be in the range of $160 million to $165 million, down from $209.8 million in the first half of FY24.
“Retail conditions have remained challenging through the first half, with customers continuing to experience cost of living pressures across all of Premier Retail’s global markets and having a strong focus on value,” the company reported.
Premier Retail expects to end 1H25 with a clean inventory position, largely in line or below that of 1H24.
The update comes ahead of a general meeting later this month to consider and vote on the merger deal between Myer and Premier’s apparel brands.