PMV -4.31%: delivered a softer 1H result with profit down year-on-year. The market initially responded positively to improving momentum in Peter Alexander and signs management is addressing the underperformance at Smiggle, though the stock traded lower through day, with a -12% swing and closing lower on the session.
- Premier Retail sales: $452.8m, -0.5% y/y
- Net income: $101.7m, -13% y/y
- Interim dividend: $0.45
- FY26 retail EBIT guidance: ~$183m vs $189m consensus forecast
The key drag remains Smiggle, which continues to struggle, though management is making changes with new leadership and targeting a return to growth by 1H27. On the positive side, Peter Alexander has started the second half strongly, with the first seven weeks of trading running ahead of expectations.
We were cautious on PMV at its October update given Smiggle’s weakness, and while the strategy to reset the brand is now underway, it still needs to prove itself. Execution remains the key swing factor, particularly in a higher-rate environment that continues to pressure discretionary retail. For now, we remain neutral on the stock as the market waits for clearer evidence the reset is translating into sustainable improvement in earnings.
MM remains neutral toward PMV
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