How Premier Investments Is Transforming After $1 Billion Apparel Brands Sale

Premier Investments FY25 Financial Highlights

Premier Investments Limited has delivered a robust financial performance for the 2025 fiscal year, reporting a net profit after tax (NPAT) of $338.2 million, marking a 31.1% increase compared to the previous year. This growth comes despite a 14.9% decline in profit before tax (PBT) to $220.3 million, which excludes certain one-off costs related to the UK market entry and the Apparel Brands separation.

The company’s strategic divestment of its Apparel Brands, comprising Just Jeans, Jay Jays, Jacqui E, Portmans, and Dotti, to Myer was a defining event of FY25. This transaction, completed shortly after the first half of the year, resulted in an In-Specie Distribution to Premier shareholders of Myer shares valued at $1.03 billion, alongside $387.1 million in franking credits. Shareholders received 7.2021 Myer shares for every Premier share held, effectively realigning Premier’s portfolio towards its remaining high-margin brands.

Focus on Peter Alexander and Smiggle

With the Apparel Brands divested, Premier’s continuing operations now focus on two key lifestyle brands – Peter Alexander and Smiggle. Premier Retail sales edged up 0.9% to $812.2 million, driven by a strong 7.7% sales increase at Peter Alexander, which reached a record $548 million. This brand has more than doubled its sales over six years, supported by expansion in retail stores and online channels, including a recent UK market entry with three stores and a dedicated website launched in late 2024.

Conversely, Smiggle experienced a 10.7% sales decline to $264.2 million, reflecting ongoing cost-of-living pressures in global markets. However, the brand showed signs of recovery in the second half of FY25 and early FY26, particularly in the UK, supported by new product collaborations and wholesale expansion strategies in the Middle East and Indonesia.

Dividend and Shareholder Returns

Premier continues to reward shareholders, declaring a fully franked final dividend of 50 cents per share payable in January 2026. This follows the substantial In-Specie Distribution earlier in the year, bringing total shareholder distributions over the past five years to nearly $2.6 billion when including cash dividends, Myer shares, and franking credits. The board remains confident in the group’s ability to navigate a volatile retail environment while focusing on growth opportunities.

Growth Initiatives and Outlook

Looking ahead, Premier is investing in customer engagement through new loyalty programs – Peter Alexander’s “Peter’s Dreamers” launching in October 2025 and a Smiggle program planned for early 2026. The company is also expanding Peter Alexander’s retail footprint with new and upgraded stores across Australia and New Zealand, while continuing to build brand presence in the UK. Operational efficiencies and a streamlined focus post-Apparel Brands sale position Premier to pursue future EBIT growth from its core brands.

Despite the positive momentum, Premier acknowledges ongoing challenges in the retail sector, including consumer spending pressures and supply chain disruptions, such as a recent shipping delay impacting Smiggle’s product launch. The company’s strategic focus on high-margin brands and international expansion will be critical in sustaining growth.