PMV +7.08%: The multi-brand retailer performed well today after a better-than-expected FY26 result, with our discussion on the stock in our morning note here proving pertinent. FY26 was mixed, with revenue slightly below expectations though earnings beat consensus, cost controls remain solid and, importantly, Peter Alexander has started to outperform.
Key results:
- Premier Retail sales of A$793.7m, down 2.8% and slightly below A$798.2m consensus.
- Earnings (EBITDA) of A$260.7m, well ahead of A$245.7m consensus.
- Peter Alexander sales rose 3.2% to A$565.3m, making it the standout brand.
- Smiggle sales fell 13% to A$230.2m, with store numbers down 13% since the start of 2025.
- Final dividend of 36cps, well ahead of the 22cps consensus estimate, while the broader buyback continues.
The encouraging part is that the underlying retail business is showing some resilience despite a difficult discretionary environment. Management says like-for-like sales and gross profit dollars were both within 1% of the prior year over the first seven weeks of FY27, while Peter Alexander continues to demonstrate better momentum. The UK exit also removes a loss-making distraction and leaves PMV with a simpler portfolio, although Smiggle’s store rationalisation and the broader consumer backdrop still need to improve.
MM’s view: We flagged PMV this morning as a potential turnaround story, and today’s result reinforces that view. The big opportunity is that PMV doesn’t need everything to go right — a recovery in consumer confidence, continued Peter Alexander momentum and a stabilisation at Smiggle could all provide earnings upside. The dividend beat and strong cost control are encouraging, but there are still plenty of operational moving parts, so we’d like to see the improving pieces of the story become more consistent before getting too carried away.
MM is bullish toward PMV
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