Peter Alexander sales reached a record $565.3 million in the latest financial year, helping Premier Investments withstand difficult conditions for discretionary retailers despite a broader fall in group revenue.
The designer sleepwear chain’s sales increased by 3.2 per cent, while total sales at the company, chaired by retail veteran Solomon Lew, fell 2 per cent to $795.5 million.
Its Smiggle children’s stationery and school supplies business recorded a 12.9 per cent decline in sales to $230.2 million, following the closure of 13 per cent of its stores.
“We’ve had a record 12 months at Peter Alexander, and we can’t do much more than produce a record in very difficult times,” Mr Lew told reporters during an earnings call.
Premier’s net profit after tax fell 10.3 per cent to $129.2 million for the year ended July 25. The group reported an earnings margin of 22.1 per cent and a gross margin of 65.2 per cent.
It closed 29 Smiggle stores during the period and opened one, leaving the chain with 268 outlets, including 141 in Australia and New Zealand.
Premier is attempting to reset Smiggle by focusing on children aged six to 12, after the brand had shifted towards a younger customer base under its previous management.
“We’ve repositioned the business, we’re restocking the stores, we’ve done some cosmetic changes to shelving and bays and the way we’ve done zoning for the various ages,” Mr Lew said.
The company plans to open a large Peter Alexander flagship store in Sydney’s central business district in October. It also intends to relaunch the brand in 24 Myer stores from August 2027.
RBC Capital Markets analyst Michael Toner said the results were in line with expectations and pointed to solid cost control, with employee expenses, rent and advertising costs all falling.
Premier will pay a final dividend of 36 cents per share, bringing its full-year payout to 81 cents.
Sales and gross profit in the first seven weeks of the new financial year were close to the levels recorded in fiscal 2025. Mr Lew said the company was prepared for Black Friday, Christmas and the back-to-school period, with stock available or due to arrive within a few days.
Premier shares rose 8.7 per cent to $12.11 in afternoon trading on Thursday.
