Premier Investments has posted a decline in sales for the fiscal first half, with the results dragged down by a double-digit drop at Smiggle.

The company’s retail division recorded sales of $455 million for the six months ended January 25, representing a 1.8 per cent decrease.

Premier Retail’s continuing operations include Peter Alexander and Smiggle after the company sold its Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E labels to Myer. 

At Peter Alexander, sales rose 6.6 per cent to a record $297.7 million. This excluded the results of the recently launched Peter Alexander UK business.

Meanwhile, sales at the stationery and gift chain Smiggle dived 14.5 per cent to $157.3 million as customers were exposed to increased cost of living pressures in “a challenging global discretionary retail environment”. The core market of young families is among the worst impacted by the current inflationary economy.

The brand operated 307 stores across its ‘proprietary’ markets of Australia, New Zealand, the UK, Ireland, Singapore and Malaysia at the end of the first half.

On the bottom line, net profit before tax fell 12.7 per cent to $148.4 million.

“The EBIT margins of the new Premier Retail group of Smiggle and Peter Alexander remain best in class, despite our customers in all markets continuing to be impacted by increased cost of living pressures,” said Premier Retail interim CEO John Bryce.

“Looking ahead, Premier Retail is focused on the future growth opportunities of Peter Alexander and Smiggle with investment in new initiatives for these much-loved brands,” he added.

For the first five weeks of the second half, Premier Retail global sales (excluding Peter Alexander UK) are up 1.8 per cent, the company noted.