Premier Investments, the listed retail group behind Smiggle and sleepwear chain Peter Alexander, has seen its children’s stationery darling lose momentum as families trim discretionary spending and discount rivals step up with cheaper copycat accessories. Once a growth engine with global ambition, Smiggle is now being repositioned under new leadership to become more relevant to core shoppers aged 6 to 12 after internal reviews suggested the brand had drifted and struggled to keep older kids engaged.
As part of the reset, Smiggle is preparing to add items like lip gloss and simple skincare to its stores alongside fresh backpack charms and more boy focused accessories, while reworking store layouts and marketing to feel more immersive and “experience driven” for kids. The business recorded a 10.7% sales drop to about $140.5 million in the six months to late January, down from a peak near $320 million in 2023, even as Peter Alexander posted record revenue of around $312.3 million, up 4.9% over the same period. Premier’s group net profit for the half landed at roughly $101.7 million after accounting for the sale of a big department store stake, a flat result on paper that masked a 13% underlying profit decline, while the share price has fallen more than 40% over the past year and slid another 4.3% on the latest update.
The broader picture looks mixed. The beauty and accessories pivot seems to be a low risk way to lift average basket sizes and refresh Smiggle’s image, and broker commentary suggests the group expects combined annual earnings from Smiggle and Peter Alexander of about $183 million in line with market forecasts. However, analysts also raise concerns that Smiggle’s earlier tilt to very young shoppers may have dented its appeal to older kids, so the upcoming product drop scheduled for around August and the push to return Smiggle to growth in the first half of next year will be closely watched as a test of whether the brand can evolve without losing its identity.
