Premier Investments delivers $141.9m profit as Peter Alexander powers ahead
Premier Investments has reported Premier Investments 1H26 Results with profit before tax (excluding significant items) of $141.9 million and statutory net profit after tax of $101.7 million for the 26 weeks ended 24 January 2026. The result reflects resilient performance in a challenging retail environment, underpinned by $119.3 million in earnings before interest and tax from Premier Retail brands Peter Alexander and Smiggle, alongside income from its 25.2% stake in Breville Group.
The company maintains a robust balance sheet with $360.1 million cash on hand and a Breville shareholding valued at $1.13 billion at market prices. The board approved an interim fully franked dividend of 45 cents per share, payable on 20 August 2026.
Key financial metrics:
- Premier Retail EBIT: $119.3 million (26.4% margin)
- Gross margin: 66.9%
- Total retail sales: $452.8 million
- Peter Alexander sales: $312.3 million (up 4.9%)
- Smiggle sales: $140.5 million (down 10.7%)
- Inventory: $105.2 million (down 1.9% on prior period)
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Peter Alexander continues its world-class growth trajectory
Peter Alexander delivered record sales of $312.3 million, representing 4.9% growth on the prior corresponding period. The brand has more than doubled first-half sales in six years, achieving a compound annual growth rate of 13.7% since 1H20.
The October 2025 launch of the “Peter’s Dreamers” loyalty programme exceeded management expectations. The programme is on track to deliver over 1 million customer acquisitions by the end of FY26, with loyalty members contributing 60% of brand sales during 1H26 at an average transaction value 45% above non-members.
During the half, four new stores opened and four existing locations were either expanded or relocated with upgraded fitouts. Over 15 further opportunities have been identified for new or larger format stores in existing markets to showcase the brand’s expanding product range.
Management is exploring international wholesale opportunities with global partners, leveraging Premier Retail’s existing channel expertise. The brand is also establishing itself in the United Kingdom following its FY25 launch.
Understanding retail loyalty programmes
Retail loyalty programmes offer customers rewards, discounts, or exclusive benefits in exchange for repeat purchases. These programmes increase customer retention and average transaction values, providing retailers with valuable data on purchasing behaviour. For investors, successful loyalty programmes signal improved revenue predictability and higher customer lifetime value, as demonstrated by Peter Alexander’s 45% transaction value premium among “Peter’s Dreamers” members.
Smiggle resets for growth with new leadership
Smiggle reported sales of $140.5 million, down 10.7% on 1H25, with store numbers reduced 8.7% from 309 to 282 locations as the brand continued its focus on operational efficiencies. The wholesale channel delivered growth driven by long-term agreements in the Middle East and Indonesia.
Georgia Chewing has been appointed Managing Director of Smiggle following a comprehensive strategic review across product, sourcing, customer engagement, marketing, and visual merchandising. The review identified the opportunity to realign Smiggle’s brand identity to its original core customer age group of 6–12 year olds.
The reset strategy focuses on three core pillars targeting a return to growth in 1H27:
| Pillar | Focus Areas | Expected Outcome |
|---|---|---|
| Product Repositioning | Innovation-led collections for 6–12 year olds; expansion into new categories (Leisure, Bath & Body, Personalisation); curated licensing strategy | Return to Smiggle’s original brand identity as a destination for Back-to-School essentials and innovative gifting |
| Simplification | Maintain high-quality product; explore speed-to-market opportunities; greater agility in sourcing; restructure order quantities for faster lead times | Improved product quality and responsiveness whilst supporting innovation |
| Brand Elevation | Marketing reset across digital, social media, influencers, in-store; elevated in-store and online experience; refreshed loyalty programme (“The Smiggle Club”) | Re-engagement with core customer through enhanced shopping experience and targeted customer engagement |
The second half of FY26 will be a transition period as the brand resets current inventory composition to make way for new product innovation in 1H27. New product and category launches, accompanied by refreshed marketing, are planned to commence during 1H27.
Strong balance sheet supports dividends and buyback
The board approved an interim fully franked ordinary dividend of 45 cents per share, payable on 20 August 2026. This decision balances the company’s strong balance sheet position with management’s forward plans and the challenges of the current retail environment.
In December 2025, the Premier Board announced its intention to undertake a 12-month on-market share buyback of up to $100 million as part of its ongoing capital management strategy. The board maintains that Premier’s current capital position provides opportunity to return capital to shareholders whilst maintaining a strong balance sheet to support future growth initiatives.
Balance sheet highlights include:
- Cash on hand: $360.1 million
- Property assets (at historical cost): $67.4 million
- Breville shareholding: $1.13 billion market value ($386.1 million on balance sheet)
Chairman Solomon Lew
“In balancing these considerations, the Board has approved an interim fully franked ordinary dividend of 45 cents per share, payable on 20 August 2026. The Board will continue to review future dividends at the end of each reporting period in the best interest of shareholders.”
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What lies ahead for Premier Investments
Premier expects Premier Retail full year FY26 underlying EBIT of approximately $183 million, subject to current trading conditions continuing. Peter Alexander’s first seven weeks of 2H26 have opened well ahead of expectations, exceeding the 1H26 sales growth trend.
The recently completed Smiggle strategic review sets a pathway for the brand, targeting a return to growth during 1H27. The second half will be a transition period as Smiggle resets inventory composition to make way for new product innovation.
Premier Retail’s organisational structure has been refreshed to provide clear accountability and oversight:
- Judy Coomber – Managing Director, Peter Alexander
- Georgia Chewing – Managing Director, Smiggle
- John Bryce – Premier Retail Chief Financial Officer
Following fulfilment of the dual role of Interim CEO and CFO since August 2023, John Bryce returns to his core responsibilities as Premier Retail CFO with a focus on cost controls and oversight of logistics and services supporting the two growth brands.
The board believes this structure supports Premier Retail’s current operations whilst remaining agile to respond swiftly to new opportunities in the future.
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