Sleepwear brand Peter Alexander the star performer for Solomon Lew’s Premier Investments
Cult favourite sleepwear brand Peter Alexander was the star performer for Solomon Lew’s Premier Investments amid the group’s near-5 per cent drop in profit last financial year.
Premier on Wednesday revealed profit hit $257.9 million in the year to the end of July, down 4.85 per cent from the previous 12 months. Revenue fell 2.7 per cent to $1.62 billion.
Its retail arm — which includes kids stationery juggernaut Smiggle, Just Jeans and Portmans — posted earnings of $325.9m, down 8.6 per cent on the previous year.
Premier said Peter Alexander delivered another record sales result of $508.6m, up 6.2 per cent. It confirmed plans to launch the brand in the UK, with the first three stores and website to open by November.
“FY24 has been another challenging year for discretionary retail,” Mr Lew said.
“Notwithstanding the tough environment, Premier Retail delivered global sales of $1.6b, an increase of 25.5 per cent when compared to our pre-COVID FY19 business.”
It comes as Premier explores a tie-up with Myer, which could see its apparel brands sold to the department store.
“In June 2024, the Premier board determined that the proposed combination of the Apparel Brands business with Myer warrants further consideration, and work has diligently taken place to analyse this proposal,” Mr Lew said on Wednesday.
“The board’s focus in assessing the proposal or any strategic review outcome will also be on creating shareholder value, whilst maintaining the potential and integrity of each of the businesses.”
At the same time, Premier confirmed the board was no longer working towards the demerger of Smiggle to become an independently listed ASX company by the start of next year.
Premier earlier this month sacked John Cheston as chief executive of Smiggle just three months after he was poached by rival billionaire retail magnate Brett Blundy to run global jewellery chain Lovisa.
Premier at the time said Mr Cheston was allegedly found to have engaged in serious misconduct — a claim he denies — and led to the immediate end of his employment.
More to come.
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