The Premier Investments Ltd (ASX: PMV) share price is up more than 5% after the company reported its FY26 result.
Premier Investments owns Peter Alexander, a high-quality pyjamas business, and Smiggle, a school accessories products business which sells branded items. It also owns a sizeable chunk of Breville Group Ltd (ASX: BRG).
FY26 result
Let’s look at the highlights for the 52 weeks ended 25 July 2026:
- Premier Retail sales declined 2% to $795.5 million
- Peter Alexander sales grew 3.2% to $565.3 million
- Smiggle sales dropped 12.9% to $230.2 million
- Premier profit before tax (PBT) declined 4.2% to $211.1 million
- Premier statutory net profit of $129.2 million, down 62%
- Final dividend per share of $0.36 (down 28%)
- Full-year dividend per share of $0.81 (up 62%)
What happened in the report?
Premier Investments said that Peter Alexander’s successful strategies continue to excite and engage customers, delivering year-on-year growth with positive like-for-like sales performance every year since FY17 and growing sales at a compound annual growth rate (CAGR) of 12.5%.
It highlighted the launch of Peter’s Dreamers (a loyalty program) in October 2025, which continue to exceed management’s expectations with the program attracting over 1.4 million customers in its first 10 months.
Peter’s Dreamers customers contributed over 60% of brand sales during FY26, at an average transaction value over 40% more than non-members.
During FY26, four new Peter Alexander stores were opened and another five were either expanded or relocated with further investment in the fit-out and customer experience.
Smiggle sales continue to suffer amid a 13% reduction in store numbers to 268, compared to 309 stores at the start of FY25. It continues to focus on “operational efficiency”.
Smiggle’s warehouse channel delivered growth in FY26, driven by long-term agreements in its two key markets of the Middle East and Indonesia.
Outlook for the Premier Investments share price
The company revealed that at least five new store openings and one relocation/expansion are confirmed for the first half of FY27, including the opening of a large flagship store in Sydney CBD in October 2026. More than 15 further opportunities have been identified for both new and larger format stores.
It continues to explore international wholesale opportunities with global wholesale partners. It will also return to Myer Holdings Ltd (ASX: MYR) as a concession partner after an approach from Myer. It’ll relaunch at 24 Myer stores from August 2027.
In the first seven weeks of FY27, the retail environment has remained challenging, but Premier Retail’s sales and gross profit dollars on a like-for-like constant currency basis were both within 1% of the prior corresponding period.
I think there’s room for the company to bounce back and it now offers a large dividend yield of around 9.9% including the benefit of franking credits. It looks like a good time to invest for a brave investor.
