Sales between Peter Alexander and Smiggle have continued to move in opposite directions, with the sleepwear brand riding high following a loyalty program launch, and its sister retail business facing a “strategic reset”.
Premier Investments confirmed in a trading update this morning that Peter Alexander sales jumped 4.9 per cent in the first half of FY26, to $312.3 million.
According to the company chaired by Solomon Lew, Peter Alexander’s first-half sales have more than doubled in the past six years, delivering a compound annual growth rate (CAGR) of 13.7 per cent since 1H20.
Peter Alexander sales continued to boom in the early second half, with management reporting that the first seven weeks of 2026 have exceeded the first half sales growth trend.
Smiggle, meanwhile, reported a sales drop of 10.7 per cent to $140.5 million, off the back of an 8.7 per cent reduction in store numbers to 282 stores. This is despite Smiggle’s wholesale channel delivering growth in 1H26, driven by long-term agreements in the Middle East and Indonesia.
With Smiggle sales continuing to fall, Premier Investments is pushing ahead with a strategic reset for the stationery and accessories retailer.
During the first half, newly appointed managing director Georgia Chewing and the Smiggle team undertook a detailed strategic review across product, sourcing, customer, marketing and visual merchandising.
“The review acknowledged Smiggle’s strong fundamentals, notably strong brand recognition with its customers; a broad international multi-channel footprint with proprietary stores, wholesale partners and online channels across over 20 countries; and a brand that has shown proven resilience through various cycles,” Premier shared in its trading update.
“The review identified the opportunity for Smiggle to re-align its brand identity to its original core customer age group of 6-12 year olds, as the brand’s offering gradually skewed towards a younger demographic over recent years.”
The retail brand will undergo a reset in the second half, primarily focusing on shifting around inventory, alongside a rejig in marketing and exploring further offshore growth opportunities.
Smiggle’s struggles have been offset by booms in Peter Alexander, with sales growth matched by four new stores being opened in the half and four more expanded or relocated.
Premier noted that over 15 further opportunities have been identified for both new and larger format stores in existing markets to help showcase the wider product offering that has been developed as the customer base for the brand continues to broaden.
Premier added that the launch of Peter’s Dreamers’, the brand’s new loyalty program, in October 2025 had exceeded management’s expectations, and is on track to deliver over 1 million customer acquisitions by the end of FY26.
Peter’s Dreamers customers contributed 6 per cent of brand sales during 1H26, at an average transaction value 45 per cent above non-members, with further opportunities to use data and insights to enhance customer experience ahead.
Overall, the total revenue of both Smiggle and Peter Alexander combined hit $452.8 million, which is down a smidge from last year when both recorded combined sales of $455 million.
Premier’s retail division finished the half with an earnings before interest and tax (EBIT) of $119.3 million, which is in line with guidance given in early December 2025. Subject to current trading conditions continuing, Premier expects its retail division's full-year FY26 underlying EBIT to be around $183 million.
Premier also owns a significant stake in the kitchenware brand Brevilles, as well as a stake in Myer.
The company’s total profit before tax was $133.3 million in the first half, down 6.15 per cent year-on-year.
Chairman Solomon Lew said the past two-and-a-half years have been a period of significant change for the business. During that time, it had fired its former managing director, John Cheston, from the Smiggle business, expanded Premier Retail CFO John Bryce’s remit to include being interim CEO of the retail division, and navigated a sell-off of its Just Group retail assets to Myer.
Today, Lew said Premier has a leaner business. “The board now looks toward the optimal organisational structure that supports the current two-brand business of Premier Retail. As I have always said, retail is about being on the ground, in store, and understanding the customer.”
Speaking on Peter Alexander, Lew said the brand’s priorities for the second half are driving further engagement in loyalty and expanding more globally. The brand has opened around three stores in the United Kingdom, where sales hit $3.8 million in the first half of FY26.
As for Smiggle, he said the stationery brand maintains strong fundamentals and a well-established multi-channel footprint.
“The strategic review has quickly identified growth opportunities available to Smiggle and we will be working on product repositioning, simplification and brand elevation over the second half and beyond with a clear plan to bring this brand back to growth in FY27,” Lew said. “We look forward to keeping our stakeholders updated on this.”
Following the result, Premier directors have approved a 45 cents per share fully franked interim dividend.