Peter Alexander’s three stores in the United Kingdom are being closed down amid trading challenges across the base that have hampered earnings and top-line growth.
Premier Investments, the parent company of the sleepwear brand and its sister subsidiary Smiggle, confirmed trading conditions were difficult in the UK, adding that the economy there has a continued negative outlook. This led to the closure of its stores in Bluewater, Stratford and White City. Peter Alexander will still sell in the market via online.
Premier did not share trading performance details on the UK market specifically, but it did share that its FY26 unaudited sales were down by 2 per cent on FY25, hitting $795.5 million.
In the first half of FY26, Smiggle reported a 10.7 per cent fall in sales to $140.5 million, while Peter Alexander sales grew by 4.3 per cent to $312.3 million.
Premier is also expecting a slip in its underlying earnings before interest and tax (EBIT) for its retail arm, falling by around 10 per cent on last year to $176 million. This is also below what Premier had forecasted in March this year, when it was hoping to hit an underlying EBIT of $183 million for FY26.
“The discretionary retail conditions in 2H26 have been very challenging, in particular during the latter months of 2H26,” Premier chairman Solomon Lew said. “Given this environment, the Board believes the FY26 Premier Retail underlying EBIT result to be a creditable outcome, being down 3.8 per cent on the guidance given in March 2026.
Speaking on Peter Alexander’s retail exit in the UK, Lew said the original entry plan was phased to test market response.
“Premier has strict store profitability and return hurdles, and we allocate capital prudently on behalf of our shareholders,” Lew said. “We have decided to channel our growth capital for Peter Alexander into our Australia and New Zealand markets, online and potentially capital-light wholesale, which we continue to explore with global partners.”
Despite the UK exit, Peter Alexander is preparing to expand its retail presence across Australia and New Zealand. The brand has confirmed at least five new store openings during the first half of FY27, including the opening of a large flagship store in Sydney CBD in October 2026.
Further opportunities have also been identified for both new and/or larger format stores, which Premier noted can better showcase the wider product offering that has been developed.
On top of this, Premier announced that Peter Alexander will return to Myer as a concession partner following an approach from Myer. A heads of agreement has been entered into and will see the sleepwear brand relaunch at Myer in 24 stores from August 2027.
As for Smiggle, Lew confirmed the brand has taken on a new and refreshed direction, which will be unveiled shortly to customers. The brand has faced challenges in the last few years, including the sudden sacking of the brand’s managing director in late 2024, matched with challenging market conditions post-COVID.
“Significant progress has been made on Smiggle’s strategic reset over the past few months,” Lew said. “Smiggle will continue its presence in the UK given the Smiggle brand is already well established. We look forward to providing a further update on Smiggle’s strategic reset with our FY26 results in September.
“Premier maintains a strong balance sheet, we remain disciplined in our approach to capital and confident in the long-term outlook for Premier Retail.”