Premier Investments Unveils $100M Buyback Amid 31% Profit Surge
Premier Investments reported a robust FY25 with a 31% rise in net profit, driven by strong performances from Peter Alexander and Smiggle, alongside a strategic capital return plan including a $100 million share buyback.
- 31.1% increase in statutory net profit after tax to $338.2 million
- Completion of $1 billion capital reduction and in-specie distribution to shareholders
- Peter Alexander expands into the UK with new stores and loyalty program launch
- Smiggle sustains global sales of $264.2 million with capital-light growth strategy
- Board announces $100 million on-market share buyback over 12 months
A Year of Transformation and Growth
Premier Investments Limited closed the 2025 financial year on a high note, reporting a statutory net profit after tax (NPAT) of $338.2 million, marking a 31.1% increase from the previous year. This strong performance was underpinned by the continuing operations of its flagship brands, Peter Alexander and Smiggle, as well as the successful divestment of its Apparel Brands business to Myer Holdings Limited earlier in the year.
The sale of Apparel Brands, completed in January 2025, was a pivotal moment for Premier, enabling a significant capital return to shareholders. The transaction culminated in an in-specie distribution valued at over $1 billion, alongside a capital reduction, delivering a total distribution of $6.96 per share for FY25. This strategic move has reshaped Premier into a focused, high-margin retail group centered on its lifestyle and gifting brands.
Retail Operations – Steady Sales and Strategic Expansion
Premier Retail, comprising Peter Alexander and Smiggle, reported global sales of $812.2 million, a modest 0.9% increase year-on-year, with an underlying EBIT margin of 24.1%. Peter Alexander stood out with record sales of $548 million, up 7.7%, driven by strong performance across all product categories and channels.
Notably, Peter Alexander made its first foray into the United Kingdom, opening three stores and launching an online channel. This expansion is supported by targeted marketing and product development tailored to the UK market, signaling Premier’s ambition to grow its international footprint. Additionally, the launch of the 'Peter’s Dreamers' loyalty program in Australia and New Zealand aims to deepen customer engagement and leverage data insights for enhanced shopping experiences.
Smiggle maintained its global sales at $264.2 million, benefiting from a well-established presence in over 20 countries. Its growth strategy leverages capital-light models through wholesale partnerships and concession stores, enabling expansion without heavy capital expenditure. Collaborations with major film studios and sports entities continue to fuel product innovation and brand relevance.
Capital Management and Future Outlook
Premier’s balance sheet remains robust, with $333 million in cash and a 25.4% equity stake in Breville Group Limited valued at over $1.1 billion. This financial strength has empowered the Board to announce a $100 million on-market share buyback program over the next 12 months, reflecting confidence in the company’s prospects and commitment to returning value to shareholders.
Looking ahead, Premier anticipates underlying EBIT of approximately $120 million for the first half of FY26, acknowledging ongoing consumer caution amid cost-of-living pressures. The company is well-positioned for the critical December and January trading periods, with early signs from Black Friday and Cyber Monday sales encouraging.
Leadership and Strategic Focus
Leadership continuity and strategic appointments underpin Premier’s growth ambitions. John Bryce continues as interim CEO, steering the company through a transformative period. Georgia Chewing has been appointed interim Chief Operating Officer of Smiggle, bringing extensive experience in eCommerce and marketing to support the brand’s expansion. The Board remains committed to international growth, operational excellence, and delivering shareholder returns.
Bottom Line?
Premier’s strong FY25 performance and $100 million buyback set the stage for a focused growth trajectory amid cautious consumer spending.
Questions in the middle?
- How will Premier balance international expansion costs with profitability, especially in the UK market?
- What impact will ongoing cost-of-living pressures have on discretionary spending in FY26?
- Who will be appointed as the permanent Smiggle leadership to drive global growth?
