Premier Investments (ASX:PMV) Falls 15% After Major Corporate Overhaul

Premier’s Post-Myer Makeover Hits Shares

Premier Investments (ASX:PMV) fell 15% today after the company, which owns Peter Alexander and Smiggle, completed a major corporate transformation in FY25. Earlier this year, Premier sold its Apparel Brands division to Myer Holdings in January 2025 and returned more than A$1 billion in value to shareholders through a fully franked in-specie distribution and capital reduction.

Following this sale, Premier has repositioned itself as a lean, high-margin retail group centred around its two strongest brands, while also maintaining a strategic 25.4 percent stake in Myer. This reshaped structure gives the company a cleaner operating profile, clearer brand focus, and stronger profitability metrics, but it also introduces new considerations for investors.

What are the Best ASX Stocks to invest in right now?

Check our buy/sell tips

Premier’s Makeover Delivers

Despite divesting a large portion of its retail operations, Premier has delivered a record profit under its new, streamlined structure. The result was powered by strong momentum at Peter Alexander, which posted record sales of $548 million, up 7.7%, and continued to be the company’s growth engine. Smiggle remained stable, generating $264.2 million in global sales across more than 20 countries.
Premier also benefited from profit booked on the Apparel Brands sale and the partial disposal of its Myer shareholding.

With these changes, Premier has effectively reshaped itself into a cash-rich, asset-light retail powerhouse with high margins, minimal debt exposure, and significant strategic flexibility. Peter Alexander continues to lead the charge, delivering both revenue growth and margin expansion while taking its first steps into international markets with three new UK stores and a dedicated online channel. The launch of “Peter’s Dreamers,” a new loyalty program rolled out in October 2025, aims to deepen repeat customer engagement across Australia and New Zealand.

Smiggle, meanwhile, maintains a global footprint in more than 20 markets through a capital-light approach that leans heavily on concessions, wholesale partnerships, and store-in-store formats. The brand continues to expand its reach through collaborations with global entertainment and sports franchises, reinforcing its presence in key growth regions such as the Middle East and Indonesia.

Premier’s Two-Brand Strategy Holds Firm as FY26 Kicks Off Strongly

Looking ahead to FY26, Premier has entered the year in a strong operational position. The company began the period with “clean inventory”, reducing stock risks at a time when consumer spending remains cautious. Early trading results have been encouraging, with Peter Alexander delivering record Black Friday and Cyber Monday performance, signalling resilient demand for the brand despite wider cost-of-living pressures. Management has guided to the underlying 1H26 EBIT of around $120 million (pre-AASB 16), reinforcing that the business is maintaining solid momentum even in a challenging retail environment. Taken together, this early outlook suggests Premier’s sharpened two-brand strategy is holding up well and providing a stable earnings base heading into the new financial year.

The Investors Takeaway for PMV

At the company’s 2025 AGM, Premier acknowledged that consumer discretionary spending remains under pressure, with many shoppers becoming more cautious due to ongoing cost-of-living and broader economic headwinds. Retail is highly sensitive to these spending cycles, and when a company like Premier signals softer consumer behaviour heading into peak season, the market typically prices in higher downside risk. That is exactly what we saw today, a valuation reset driven more by sentiment than by structural deterioration.

Importantly, the share price drop doesn’t imply that Premier is “finished”. Management continues to highlight clean inventory positions, which reduces markdown exposure, and early promotional periods like Black Friday delivered pockets of strength. These factors don’t remove the macro challenges, but they do offer some reassurance that the core brands are still resonating with customers even in a tougher retail climate.