Solomon Lew’s Premier revs up Smiggle in Middle East

afr.com:

Solomon Lew’s Premier Investments is stepping up overseas expansion of its Smiggle stationery chain, with 20 stand-alone stores planned by the end of 2024 in the Middle East and 60 in that region over the next decade.

The company, which also runs clothing brands Just Jeans, Jay Jays, Peter Alexander, Dotti and Jacqui E, also said cost-of-living pressures were starting to crimp sales. Sales were down 2 per cent in the six weeks covering August and the first part of September, compared with the same time last year.

Solomon Lew, chairman of Premier Investments.  Eamon Gallagher

Premier said profit after tax for the 12 months ended July 29 slipped by 4.9 per cent to $271 million, although revenue was up 10.7 per cent to $1.66 billion.

Mr Lew said while a more difficult economic environment had arrived, the retail brands in the Premier stable had “again outperformed the market, delivering both record sales and record EBIT results”.

Premier is paying a final dividend of 60¢ a share, up from last year’s 54¢ a share, although shareholders did receive an extra 25¢ a year ago in a special dividend.

Mr Lew said work was continuing on a strategic review of the business to find the “optimal future structure” for the group.

The strategic review was announced in late August, at the same time Premier said its chief executive, Richard Murray, would leave the business. Premier, with UBS and Arnold Bloch Leibler, wants to unlock value in the company’s businesses, which also include legacy brands bought 15 years ago when Mr Lew acquired Just Group.

Mr Murray was hired just two years ago from electronics retailer JB Hi-Fi.

John Bryce, Premier Retail’s longstanding chief financial officer, is running Premier as interim chief executive and