Premier Investments fell to its lowest level in almost a year on Monday and was set for its worst day in almost five years after the Australian retailer reported weaker half-year results as customers face rising of the cost of living around the world.
The company, owned by billionaire Solomon Lew, estimated global sales from its retail business would be between A$855 million and A$865 million ($526 million to $532 million) for the first half of fiscal 2025 The highest figure is lower than the A$879.5 million recorded a year ago.
Premier shares plunged 15.7% to A$27.84, their lowest level since February 14, 2024, and were set for their worst trading session since March 23, 2020. The stock was the first loser on the benchmark ASX 200 that day.
“Retail conditions remained challenging during the first half of FY25, with customers continuing to experience cost-of-living pressures across Premier Retail’s global markets and being strongly value-oriented.” , the company said.
The specialist fashion chain operator’s retail business, made up of the Peter Alexander and Smiggle brands, said it expected to end the half-year with a clean stock position, largely in line with or below guidance levels. previous year.
Premier Investments’ recent bleak outlook suggests its Peter Alexander and Smiggle brands were facing greater challenges than initially expected as their combined sales declines outpaced the overall performance of the clothing segment, Citi said in a note.
In October 2024, Premier said its clothing business would be acquired by local department store owner Myer Holdings in a deal valued at $569 million.
($1 = A$1.6250)
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