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“Peter Alexander’s sales have more than doubled from five years ago and the brand has identified significant growth opportunities for new and/or larger formats and planned offshore market expansion,” the company said in a statement to the ASX.
“Smiggle has expansion planned in existing markers and is also exploring new geographies.”
Smiggle could end up sitting separate to Premier Investments once the review is completed. Credit: Edwina Pickles
Premier is expecting to report record sales and earnings for 2023 despite the tough retail environment and the company confirmed on Monday it is headed for earnings growth of up to 6.6 per cent for the year.
The company’s earnings before interest and tax are expected to come in at between $355 million and $357 million, which is up 112 per cent on where they were in the 2019 financial year, before the COVID-19 pandemic.
There are several parts to the Premier business, which includes apparel brands Dotti, Just Jeans and Jay Jays and an investment arm which holds a 25.6 per cent stake in coffee machine maker Breville and more than 20 per cent of department store Myer.
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Premier shares had declined by 12.4 per cent for the year to date before Monday’s market open, against a backdrop of overall pessimism about consumer spending and the position of non-discretionary retailers.
It could be several months before investors know for sure if the business will undergo any significant changes.
“Given the range of issues to be considered, there is no certainty that the Review will result in a change to Premier’s current corporate, operating or capital structure,” the company said.
Investors cheered the updates, with Premier shares jumping by 12.2 per cent to $24.41, in a day that delivered mixed results for the nation’s retailers.
Earnings results from coffee machine manufacturer Breville also provided a bright spot for Premier on Monday, given Premier holds a 25.6 per cent stake in the business. Breville shares leapt by close to 15 per cent after beating the market’s expectations with a 4.2 per cent profit jump.
That pushed the value of Premier’s stake in Breville up by around $71 million.
However, fellow home goods retailer Adairs did not have a similar bright start to the week, with shares sliding close to 16 per cent after it reported a 15.7 per cent drop in net profit and declined to pay a final dividend in the face of challenging trading conditions.