Premier Investments plunges on soft sales guidance
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More news: Premier Investments was the worst performer on the ASX 200 after morning trade, as chairman Solomon Lew outlined softer-than-expected guidance for the first-half period.
Shares were down 13.1% to $15.72 at midday AEDT. The stock is now down 43.5% over the last 12 months.
RBC Capital Markets analyst Michael Toner said Premier Investment's first-half retail sales guidance of $120 million came in 18% below consensus forecasts.
Toner believes the new $100 million share buyback "isn't overly material" to the group's earnings per share, estimating a 3.6% EPS accretion.
Premier Investments declares $100m buyback after Apparel Brands sale
The news: Peter Alexander and Smiggle owner Premier Investments has announced a 12-month, on-market share buyback of up to $100 million, following the completion of its Apparel Brands sale to Myer earlier this year.
The numbers: Company chairman Solomon Lew said the Myer deal has boosted its capital position to allow the buyback while maintaining a strong balance sheet to support future growth initiatives.
Lew also said the group has seen discretionary spending "under pressure" during the start of FY26, with shoppers cautious due to ongoing cost-of-living impacts.
What they said: "Despite a challenging global environment, the Black Friday trading week provided encouraging early signs ahead of the all-important Christmas, Boxing Day and back-to-school trading periods, with Peter Alexander delivering record sales across the Black Friday and Cyber Monday promotional period," said Lew.
The source: ASX
