Premier shares jump on demerger plan
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More news: Shares in Premier Investments were up 3.4% to $31.70 in early trading on the ASX after the retail giant outlined plans to unlock value by demerging its Smiggle and Peter Alexander businesses.
It looks to demerge its Smiggle stationery business by the end of January 2025 and is exploring the demerger of sleepwear chain Peter Alexander during calendar year 2025 as part of a wider restructure of the company.
Premier Investments outlines Peter Alexander and Smiggle demergers
The news: Premier Investments has cut its first-half dividend and posted a dip in sales while it looks to demerge its Smiggle and Peter Alexander businesses.
The numbers: The large retailer's net profit for the first half of the financial year rose 1.7% to $177.23 million, while revenue fell 2.9% to $890 million despite the group posting record Boxing Day sales.
The company will pay an interim dividend of 63 cents a share, down from 70 cents a year ago although that included a special dividend of 16 cents.
The context: The retailer, backed by billionaire Solomon Lew, said its ongoing strategic review had identified that the potential demerger of Smiggle and Peter Alexander is likely to accelerate growth opportunities for the two brands.
Accordingly, Premier is working on the demerger of its Smiggle stationery business by the end of January 2025 and exploring the demerger of sleepwear chain Peter Alexander during calendar year 2025 as part of a wider restructure of the company.
The group, whose brands also include Just Jeans, Portmans as well as equity stakes in Myer and appliances group Breville, said sales for the first eight weeks of the second-half are showing improving momentum and back up in line with the prior comparable period.
The source: ASX announcements
