Written by Nikita Maria Gino
(Reuters) – Premier Investments fell to its lowest level in almost a year on Monday and was headed for its worst day in nearly five years after the Australian retailer forecast weaker results in the first half of the year as clients globally struggle with rising living costs.
The company, owned by billionaire Solomon Liu, estimated global sales from its retail business in the range of A$855 million to A$865 million ($526 million-$532 million) for the first half of fiscal 2025. The upper limit of 879.5 was recorded. million Australian dollars a year ago.
Premier shares fell as much as 15.7% to A$27.84, the lowest since February 14, 2024, and were bracing for their worst trading session since March 23, 2020. The stock was the biggest loser on the benchmark index on the day.
“Retail conditions remained challenging during 1H25 with customers continuing to face cost of living pressures across Premier Retail’s global markets with a strong focus on value,” the company said.
The specialist fashion chain operator's retail business, which consists of the Peter Alexander and Smiggle brands, said it expects to end the half-year with clean inventory, broadly in line with or below last year's levels.
Premier Investments' recent bleak outlook suggests its Peter Alexander and Smiggle brands face greater challenges than initially expected, with their combined sales decline outpacing the overall apparel sector performance, Citi said in a note.
In October 2024, Premier said its apparel company would be acquired by local department store owner Myer Holdings in a deal valued at $569 million.
($1 = 1.6250 Australian dollars)
