Premier Retail saw lower first-half sales amid Smiggle’s weaker performance attributed to cost of living pressures.
The group’s sales from continuing operations fell 1.8 per cent to $455 million while earnings before interest and taxes (EBIT) declined 16 per cent to $129.4 million.
Smiggle’s sales grew 6.6 per cent to $297.7 million. The sleepwear retailer opened four new stores and relocated or expanded four stores.
Meanwhile, Smiggle’s sales plunged 14.5 per cent to $157.3 million. The stationery store chain opened two new stores but closed four stores.
During the period, Premier Retail completed the sale of its apparel brands—Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E—to Myer.
“The Premier Board considers the transaction to be good for both companies in providing Myer and the Apparel Brands with a platform for future growth in which individual Premier shareholders may participate, while also unlocking immediate value for Premier and its shareholders,” said Solomon Lew, chairman of Premier Investments, the parent company of Premier Retail.
“Premier currently continues to own the high margin, iconic brands of Peter Alexander and Smiggle. Both brands will fully focus on leveraging growth in existing markets and expanding their reach in new markets through further international expansion in the coming years.”
“In addition, Premier continues to hold its substantial investment in Breville Group, strategic property ownership and significant cash reserves.”
Premier Investments’ profit from continuing activities plunged 18 per cent to $101.3 million while revenue slid 1.27 per cent to $465.2 million.