By Nikita Maria Jino
(Reuters) - Premier Investments dived to a near one-year low on Monday and was set for the worst day in almost five years after the Australian retailer forecast weaker first-half results as customers globally struggled with rising costs of living.
The company, owned by billionaire Solomon Lew, estimated global sales from its retail business to be in the range of A$855 million to A$865 million ($526 million-$532 million) for the first half of fiscal 2025. The higher end is below the A$879.5 million logged a year ago.
Premier's shares plunged as much as 15.7% to A$27.84, the lowest since Feb. 14, 2024, and were set for their worst trading session since March 23, 2020. The stock was the top loser on the benchmark ASX 200 index on the day.
"Retail conditions have remained challenging through H1 FY25 with customers continuing to experience cost of living pressures across all of Premier Retail's global markets and having a strong focus of value," the company said.
The specialty fashion chain operator's retail business, consisting of Peter Alexander and Smiggle brands, said it expected to end the half-year with a clean inventory position, largely in line with or below year-ago levels.
Premier Investments' recent bleak outlook suggested its brands Peter Alexander and Smiggle were facing more significant challenges than initially expected as their combined sales decline outpaced the overall apparel segment's performance, Citi said in a note.
In October 2024, Premier had said that its apparel business would be acquired by local department store owner Myer Holdings in a deal valued at $569 million.
($1 = A$1.6250)