Solomon Lew’s Premier Investments has told its shareholders on the ASX to expect another period of declining sales, while lowering its future earnings guidance.

The Peter Alexander owner spent the 2026 financial year preparing to close down its three stores that the sleepwear retailer operated in the UK, before plotting five new store openings in Australia and New Zealand. Premier Investments is also planning to relaunch in Myer concessions in August 2027.

But these changes haven’t managed to stave off a 2 per cent sales decline year-on-year, with Premier’s fiscal 2026 figure expected to be $795.5 million. The retail conglomerate has also reissued guidance for earnings before interest and tax; on March 20, it expected a figure of around $183 million, which has now been lowered to $176 million.

“The discretionary retail conditions in 2H26 (second half, fiscal 2026) have been very challenging, in particular during the latter months of 2H26,” Lew said.

“Peter Alexander is one of Australia’s and New Zealand’s most loved brands. While trading conditions in the United Kingdom remain difficult, the decision to close our UK stores allows us to concentrate our investment where the brand is performing strongly.”

Lew called Peter Alexander’s entry into the UK an opportunity to “test market response”. 

“Turning to Smiggle, the board is optimistic about the new and refreshed direction of the Smiggle brand, which will shortly be unveiled to customers,” he added. In March, Premier announced the appointment of Georgia Chewing as Smiggle’s MD, replacing interim CEO John Bryce.

“Significant progress has been made on Smiggle’s strategic reset over the past few months. Smiggle will continue its presence in the UK given the Smiggle brand is already well established.”

Lew maintained that he is confident in the long-term future of Premier.