PMV –11.01%: disappointed the market with a soft trading update. The key issue was deteriorating discretionary spending late in the second half, with Premier Retail sales falling 2% and earnings (EBIT) now expected to be around $176m, below its previous guidance of ~$183m.
Premier described trading conditions in 2H26 as “very challenging”, particularly towards the end of the year, highlighting the pressure facing discretionary retailers as consumers rein in spending. The decision to exit Peter Alexander’s UK stores is disappointing from an international growth perspective, although returning the brand to Myer provides a relatively capital-light avenue for domestic expansion.
MM’s view: A disappointing update, with both sales and earnings missing expectations, but the direction of travel shouldn’t come as a major surprise given the increasingly difficult consumer backdrop. The 12% sell-off looks severe, although PMV needs to demonstrate that earnings have found a floor before the market is likely to look through the current weakness.
MM remains neutral toward PMV
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