Premier Investments
Australian retailer running Peter Alexander sleepwear and Smiggle kids' stationery chains.
The call
Peter Alexander's growth is carrying a company where Smiggle keeps losing ground to cheap direct-from-China competition, with a possible demerger still undecided.
Premier Investments owns two very different businesses: Peter Alexander, which makes pajamas and loungewear and is doing well with good profits and growth, and Smiggle, a kids' stationery and accessories store that has lost more than half its sales in recent years. Smiggle is being squeezed by Temu, a Chinese app that sells similar items for less money directly from factories, making it hard for Smiggle to compete on price. The company's future depends on two unknowns: whether Smiggle's new leadership can turn things around by selling more beauty products and focusing on younger kids (results come in September 2026), and whether the company splits itself into two separate companies, which would let each business be valued on its own rather than dragging each other down.
Why
01
AI pressure: None apparent. No AI product replaces sleepwear or stationery shopping; any AI effect runs through Temu's pricing algorithms, not a chatbot or agent. Could AI do the core job? Unlikely.
02
Bigger players: Temu. Temu's direct-from-factory pricing undercuts Smiggle's stationery lineup, and Smiggle sales are down 10.7% to A$140.5m in 1H26. Could a giant copy it? Yes, easily.
03
What protects it. Peter Alexander keeps growing and funding the group while a large Breville stake gives balance-sheet room to fix or split off Smiggle.
What would change this call
Smiggle FY26 results released 23 Sep 2026 show sales decline beyond -10%. Would confirm Temu-driven erosion continues despite new MD's turnaround efforts.
Premier Investments announces a Smiggle/Peter Alexander demerger decision. Would show management is separating the struggling brand from the growth brand.
Peter Alexander UK stores report first-year sales and unit economics. Would show whether the profitable brand can replicate its moat outside Australia.
Premier Investments announces a Smiggle/Peter Alexander demerger decision. Would show management is separating the struggling brand from the growth brand.
Peter Alexander UK stores report first-year sales and unit economics. Would show whether the profitable brand can replicate its moat outside Australia.
Key numbers
- Peter Alexander FY25 sales A$548.0m, up 7.7%
- Smiggle 1H26 sales A$140.5m, down 10.7%
- Smiggle store count fell 309 to 282 in 1H26
Named risks
- Smiggle sales decline (-10.7% YoY in 1H26) continuing without stabilization under Temu price pressure.
- Unresolved Smiggle misconduct investigation and leadership overhang cited by analysts as sentiment drag.
- Potential demerger execution could split risk and re-price both brands independently, with outcome uncertain as of Jul 2026.
- Discretionary retail macro pressure in Australia (cost-of-living, rates) flagged repeatedly by Chairman Lew.
- Peter Alexander UK expansion unit economics unproven beyond 3 initial stores opened Nov 2024.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Temu | gaining on | Undercutting Smiggle via direct-from-factory pricing, cited amid Smiggle's -10.7% YoY sales fall to A$140.5m by Jan 2026 |
| Lovisa | gaining on | Recruited former Smiggle CEO John Cheston and multiple ex-Smiggle executives, Sep 2024 to Oct 2025 |
| Marks & Spencer, Next | contesting | Established UK sleepwear incumbents facing Peter Alexander's Nov 2024 UK entry with just 3 stores |
| Officeworks | contesting | Domestic Australian stationery rival cited amid Smiggle's structural sales decline |
Questions people ask
- Is Premier Investments profitable in 2026?
- Yes. Premier Investments reported statutory NPAT of A$101.7m for 1H26 (26 weeks to 24 Jan 2026) with an EBIT margin of 26.4%, driven mainly by record Peter Alexander sales of A$312.3m, per its 20 March 2026 results filing.
- Is Smiggle struggling as a business under Premier Investments?
- Yes. Smiggle sales fell to A$140.5m in 1H26 (down 10.7% YoY), continuing a decline from a reported ~A$320m peak in 2023, with store count dropping from 309 to 282 by 24 Jan 2026, per Premier's March 2026 results overview.
- Who is Premier Investments' biggest competitor for Smiggle?
- Temu is repeatedly cited by financial press as the emerging threat, undercutting Smiggle with gamified, direct-from-factory pricing on stationery and accessories, as reported by the Sydney Morning Herald on 26 September 2025.
- Could Premier Investments split Smiggle and Peter Alexander into separate companies?
- As of 17 July 2026, Premier Investments was reportedly exploring a possible separation of Smiggle and Peter Alexander into distinct entities, though this remains an option under consideration and not a finalized transaction, per Simply Wall St.
- Who owns Premier Investments?
- Premier Investments (ASX: PMV) is publicly listed, with founder-chairman Solomon Lew, through Century Plaza and related entities, controlling roughly 31 to 43 percent of shares as of 9 June 2026 (exact figure varies by source).
- Did Premier Investments have a management scandal at Smiggle?
- Yes. Smiggle managing director John Cheston was sacked in September 2024 for alleged serious misconduct; Chairman Solomon Lew publicly alleged bribery, gambling, intoxication, sexual harassment and bullying at Smiggle in September 2025, per the AFR.
Timeline
- 2026-07-17Premier reportedly exploring separation of Smiggle and Peter Alexander into distinct entities
- 2026-03-201H26 results: Peter Alexander record A$312.3m sales, Smiggle falls to A$140.5m
- 2026-03-01Georgia Chewing appointed Managing Director of Smiggle to lead turnaround
- 2025-12-01Board announces A$100m 12-month on-market share buyback
- 2025-09-25FY25 results released; Lew alleges misconduct culture at Smiggle publicly
- 2025-01-26Apparel Brands sale to Myer completed for ~A$945m; Myer shares distributed to holders
- 2024-11-01Peter Alexander launches in UK with 3 London stores plus e-commerce
- 2024-09-01Smiggle MD John Cheston sacked for alleged serious misconduct
Revision history
26 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Premier Investments 2025 Full Year Results Overview (2025-09-25)
- Premier Investments (PMV) Investor Relations, Earnings Summary & Outlook
- Premier Investments 1H26 Results Overview (2026-03-20)
- Premier Investments posts solid 1h26 profit and reshapes retail leadership (2026-03-19)
- Annual Report 2025
- Smiggle's beauty bet to revive sliding sales (2026-03-22)
- Lovisa CEO denies misconduct allegations at Smiggle (2025-09-25)
- Myer buys Just Jeans, Jay Jays and Dotti in Premier Investments deal (2024-10-29)
- Premier Investments 1H25 Results (2025-03-21)
- Premier Investments 1H26 Results Overview (2026-03-20)
- Premier probe into Smiggle shows culture of serious misconduct (2025-09-25)
- ASX teardown: Premier Investments after the Apparel sale (2026-06-09)