Premier to Demerge Top Brands

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By Published On: March 27, 20240 Comments

Premier Investments has shared its first half results, announcing intentions to demerge Smiggle and Peter Alexander.

Premier Investments released its first half results this week. The company reported a statutory 1H24 NPAT of $177.2 million and EBIT of $209.8 million. Global sales are down 2.8 percent on last year’s record first half at $879.5 million, however, Premier notes this is up 20.1 percent on ‘pre-COVID’ 1H20.

The results announcement also revealed plans to demerge Smiggle and Peter Alexander in FY25. 

“The ongoing strategic review has identified that the potential demerger of Smiggle and Peter Alexander is likely to maximise and accelerate the growth opportunities for these two brands over time,” said Chairman Solomon Lew. “We are therefore working towards a demerger of Smiggle by the end of January 2025 and exploring a demerger of Peter Alexander in calendar year 2025.”

In the first half, Peter Alexander delivered another record sales result for the half of $279.3 million, up 6.7 percent on 1H23 and up 92.8 percent on ‘pre-COVID’ 1H20. Peter Alexander traded from ten less stores than in January 2020.

Peter Alexander intends to launch the brand into the United Kingdom with the first two stores and dedicated UK website planned to open before Christmas 2024. Up to ten new UK store opportunities have been identified in the short term as part of the initial launch plans.

Smiggle delivered global sales of $183.9 million for 1H24, down 3.6 percent on 1H23 – the brand’s second best sales result following a surge in spending as customers returned post COVID. 1H24 Global sales are down 5.1 percent on a record ‘pre-COVID’ 1H20, whilst currently trading as a more efficient business with 51 fewer stores than in January 2020.

Smiggle has also reached an agreement with a key wholesale partner to open 100 freestanding Smiggle stores in Indonesia over the next ten years in addition to their current ‘store-in-store’ arrangements. 

Premier’s five Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E) collectively delivered sales for the half of $416.3 million, a decrease of 8.1 percent on a record 1H23 and up 5.8 percent on ‘pre-COVID’ 1H20 sales. The Apparel Brands traded from 37 less stores than in January 2020.

Premier Retail Interim CEO John Bryce, said “With customers facing increased cost of living pressures, Premier Retail’s strategy is anchored on delivering value for customers in our products and shopping experience, whilst also maintaining a relentless focus on inventory productivity and operational efficiencies.

“We opened the second half with inventory down $33 million or 13 percent on last year. Sales for the first 8 weeks of 2H24 are showing improving momentum from 1H24, back up in line with the prior comparable period.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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