The Premier Investments Ltd (ASX: PMV) share price is currently down 12% after the company gave an update at the 2025 AGM update.
Premier Investments owns the Peter Alexander (pajamas) and Smiggle (school stationery, bags, drinks bottles etc. for kids) retail businesses. It’s also a substantial shareholder in Breville Group Ltd (ASX: BRG).
Disappointing trading update
The annual general meeting (AGM) is an opportunity for the company to tell investors how FY25 performed.
The company said that its Premier Retail started FY26 with a clean inventory position.
Premier Investments said that discretionary spending remains under pressure with consumers cautious due to ongoing cost-of-living impacts.
But, despite a challenging global environment, the company said that the Black Friday trading week provided “encouraging early signs ahead of the all-important Christmas, Boxing Day and back-to-school trading periods”.
Peter Alexander delivered record sales across the Black Friday and Cyber Monday promotional period.
The ASX retail share said that Premier Retail’s FY26 first-half underlying EBIT (EBIT explained) for the 26-week period to 24 January 2026 could be around $120 million.
But, it also said it doesn’t underestimate the significance of the December and January trading period ahead. This is usually a critical driver for its first-half result. Management commented the business is “well prepared” for the important trading period ahead.
Premier Investments share buyback
The company said that it has a strong balance sheet, putting it in a position to consider a range of opportunities and initiatives.
Premier Investment’s board of directors has been thinking about capital management. They decided that it has an opportunity to return up to $100 million of capital to shareholders while maintaining a strong balance sheet to support future growth initiatives.
Therefore, the company has announced a 12-month on-market share buyback of up to $100 million as part of its capital management strategy.
Premier Investments said it will continue to review dividends and its capital management strategies at each reporting date.
Is the Premier Investments share price a buy?
The company’s Peter Alexander and Breville look as though they have a good future ahead, including international growth potential. The UK expansion for Peter Alexander could be particularly useful if it’s successful at expanding its store network in the country.
I think it could be a long-term buy at this lower valuation if earnings can rebound in the future.
This business could be one of the attractive ASX growth shares and ASX dividend shares at this level, I think it’s one to watch.
