Premier Investments – the company behind Peter Alexander and Smiggle – has reported a dip in its retail arm’s annual sales and a fall in its earnings before interest and tax (EBIT) for FY26.
Premier Retail recorded total sales of $795.5 million, a slight dip on the $812.2 million reported in FY25. The company’s EBIT, meanwhile, fell by 9.9 per cent year-on-year to $175.9 million.
The sales slip was offset by a $17 million jump in sales for Peter Alexander, hitting its latest record high of $565.3 million. Smiggle dragged on group sales, falling from $264.2 million in FY25 to $230.2 million in FY26.
Premier chairman Solomon Lew said Peter Alexander’s sales jump in FY26 came as the pyjama retailer launched its Peter’s Dreamers loyalty program, which attracted more than 1.4 million members within its first 10 months of operation.
Peter’s Dreamers customers reportedly contributed over 60 per cent of brand sales during FY26, at an average transaction value over 40 per cent above non-members.
As for Smiggle, Lew said the relaunch initiatives set in motion in March 2026 have been delivered, with the brand entering FY27 with a refreshed product range and renewed customer proposition ahead of the peak trading period.
Overall, the chairman said the discretionary retail conditions in the second half of FY26 were very challenging, particularly in the latter end of the half. This matches similar commentary from other fashion and discretionary retailers.
“Despite this backdrop, we remained focused on executing our growth strategies and positioning both brands for the critical Black Friday, Christmas and Back-to-School trading period ahead,” Lew said. “The actions taken over the past six months leave both brands better placed as they enter 1H27.”
Lew said that Premier’s diversified portfolio, which also includes a 25.2 per cent stake in kitchen appliance business Breville that has paid dividends of 38 cents per share for FY26, allows the company to invest in brands and pursue new opportunities.
"In balancing these considerations, the board has approved a final dividend of 36 cents per share, fully franked, bringing total FY26 dividends to 81 cents per share,” Lew said.
Looking ahead, Premier has confirmed that at least five new Peter Alexander store openings are planned to happen before the end of 2026, including the opening of a large flagship store in Sydney CBD next month. One relocation/expansion is also confirmed.
As for Smiggle, Premier is continuing its refresh of the brand after axing 13 per cent of its stores since the start of FY25. The refresh includes reclaiming the 6 to 12-year-old demographic through new lifestyle, bath and body, and personalisation ranges, and an upgraded marketing strategy underpinned by the recently launched Smiggle Club loyalty program.
Premier also shared an early trading update for the start of FY27, noting that Premier Retail’s sales and gross profit dollars on a like-for-like constant currency basis were both within 1 per cent of the prior corresponding period.
These first 7 weeks account for only a relatively small proportion of first half trading, the company pointed out, with the key gifting and peak trading periods still ahead.