Premier Investments, a renowned retail conglomerate, recently announced plans to pursue the demerger of two of its prominent brands, Smiggle and Peter Alexander, by the end of January 2025 and during calendar year 2025, respectively. This strategic move was revealed alongside the company’s half-year earnings update, signifying a significant shift in its operational structure.
According to Premier Chairman Solomon Lew, the decision to explore the demerger of Smiggle and Peter Alexander stems from an ongoing strategic review, which highlighted the potential to maximize and accelerate growth opportunities for these brands independently. However, any demergers will be contingent upon further review and board approval, as well as regulatory and shareholder approvals.
During the six months ending Jan. 27, Premier reported global sales across its retail businesses totaling 879.5 million Australian dollars (US$575 million), reflecting a marginal decline of 2.8% compared to the record fiscal first half of the previous year. Despite this, sales demonstrated a robust 20% increase over pre-COVID levels, indicating resilience amid challenging market conditions.
Earnings before interest and tax (EBIT) for the period decreased to A$209.8 million from A$220.4 million, although it surpassed the company’s guidance of around A$200 million for the half-year. On a statutory basis, net profit witnessed a modest uptick of 1.6%, reaching A$177 million.
For shareholders, Premier declared an interim dividend of 63 Australian cents per share, a slight reduction from the previous year’s payout of 70 Australian cents, which included a special dividend of 16 cents.
Looking ahead, Premier remains optimistic about the fiscal second half, noting an improving momentum in global sales. This positive outlook comes amidst a challenging discretionary retail landscape marked by concerns over the cost of living and inflation, positioning Premier Investments to navigate these headwinds with resilience and agility.