Australian PM eyes worst session in nearly 5 years on grim outlook for retail sales By Reuters
Author: Nikita Maria Jino
(Reuters) – Premier Investments plunged to a nearly one-year low on Monday and was set for its worst day in nearly five years after the Australian retailer forecast weaker first-half results as shoppers globally grappled with rising living costs.
The company, owned by billionaire Solomon Lew, has estimated global sales of its retail business in the range of A$855 million to A$865 million ($526 million to A$532 million) for the first half of fiscal 2025. The higher end is below the A$879.5 million recorded previously a year.
Shares in Premier fell as much as 15.7% to A$27.84, the lowest since February 14, 2024, and were set for their worst trading session since March 23, 2020. The stock was the biggest loser on the benchmark on the day.
“Retail conditions remained challenging through the first half of FY25 with customers continuing to experience cost-of-living pressures across Premier Retail’s global markets and a strong focus on value,” the company said.
The operator of the specialist fashion chain’s retail business, which comprises the Peter Alexander and Smiggle brands, said it expected to end the half-year with a clean inventory position, largely at or below last year’s levels.
Premier Investments’ recent poor outlook suggests its Peter Alexander and Smiggle brands face more challenges than initially expected as their combined sales declines outpaced the performance of the overall apparel segment, Citi said in a note.
In October 2024, Premier said its clothing business would be taken over by local department store owner Myer Holdings in a deal valued at $569 million.
($1 = A$1.6250)
