The Premier Investments Ltd (ASX: PMV) share price is up more than 4% after reporting its FY25 result.
Premier Investments owns Peter Alexander, Smiggle and a large minority stake of Breville Group Ltd (ASX: BRG). It recently sold its apparel brands (including Just Jeans and Jay Jays) to Myer Holdings Ltd (ASX: MYR).
Premier Investments FY25 result
Below are some of the main highlights from the 52 weeks to 26 July 2025. Most of the numbers refer to the continuing business.
- Sales up 0.9% to $812.2 million
- Premier Retail Underlying EBIT (EBIT explained) declined 18% to $195.4 million
- Underlying profit before tax (PBT) down 14.9% to $220.3 million
- Continued and discontinued operations total net profit after tax (NPAT) increased 31.1% to $338.2 million
- Final dividend per share of $0.50
There were a couple of key events that occurred during the year.
Premier Investments completed the sale of the apparel brands to Myer just after the end of the FY25 first half. It gave shareholders a distribution of the payment (Myer shares) and franking credits.
It also launched Peter Alexander in the UK with a website and three stores in prime London shopping centres were launched in November 2024. The business said it’s marketing in the country to raise brand awareness and reputation. There are reportedly opportunities for up to 10 new stores as part of the initial launch plans in future years.
Divisional performance
There was mixed performance between the two main businesses over the year.
Peter Alexander sales grew 7.7% to $548 million over the 12 months, while Smiggle sales dropped 10.7% to $264.2 million.
In the second half of FY25, momentum improved for both businesses. Peter Alexander second half sales grew by 9.2% to $250.3 million and Smiggle sales only dropped 4.7% to $106.9 million.
In October 2024, Peter Alexander relocated and expanded the brand’s flagship store in Chadstone. Trading has shown “significant growth”. It’s rolling out the new store concept design elements in new and expanded stores.
During the year, six new Peter Alexander stores were opened and nine existing stores were relocated/expanded in ANZ. More than 15 opportunities have been identified for new and/or larger format stores for ANZ.
For Smiggle, three new proprietary stores were opened in FY25, while 16 stores were closed to focus on operational efficiencies.
On the wholesale side of things, the company highlighted two key markets continue to evolve for Smiggle. The Middle East has 16 freestanding stores as well as in-store arrangements, while in Indonesia there are 18 freestanding stores. It has planned with the wholesale partner to open 100 freestanding stores within ten years in Indonesia, in addition to the more than 140 existing in-store locations.
Outlook for the Premier Investments share price
The company said customer shopping patterns are migrating towards key promotional periods such as Black Friday, Christmas and Boxing Day.
Pleasingly, the FY25 second half momentum has continued into the first six weeks of FY26. Peter Alexander sales grew 9.2% and Smiggle sales were down 4%.
It blamed the Smiggle sales decline on an isolated shipping line delay that postponed the launch of key new season Smiggle product into Australia during August which has since arrived.
The company also said its gross profit margins continued to be delivered by both brands during the first six weeks.
If Smiggle can deliver international growth and Peter Alexander can perform strongly in Australia and the UK, this could be an underrated buy for the long-term.
