Fund Manager Summary on Premier Investments Ltd (ASX:PMV)
In January 2026, Airlie Funds Management commented that Premier Investments Ltd (ASX:PMV) downgraded first‑half FY26 profit guidance, with the issues largely isolated to Smiggle, the stock trading at about 10x look‑through EBIT and the manager remaining a patient holder. Across fund manager commentary there is a consistent, cautious view that Premier’s core strengths—market‑leading Australian brands Peter Alexander and Smiggle, a strong balance sheet, disciplined capital management and a 25% stake in Breville—provide a platform for value creation, but near‑term execution and international expansion risks dominate sentiment: managers note Peter Alexander’s resilience and Smiggle’s operational underperformance (including leadership gaps and a downgrade to guidance), see the Myer transaction and ongoing strategic review as potential catalysts or precursors to spin‑offs, and flag that international growth optionality is unproven and may be fully priced in; valuation perspectives vary from views of attractive entry (undervalued at ~10x look‑through EBIT or trading on mid‑teens P/E and low single‑digit yields) to caution that owning Breville directly could be preferable, so actionable considerations are to monitor Smiggle turnaround progress and management appointments, assess execution on international roll‑outs and strategic review outcomes (including potential divestments or spin‑offs), and weigh the margin of safety provided by the balance sheet, cash generation and Breville exposure against consumer discretionary headwinds and execution risk.
Commentary From The Managers
There are 17 insights from 9 fund managers regarding their investment in Premier Investments Ltd (ASX:PMV) available on Thesis Tracker.
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Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Clime Investment Management
31 Jan 2026
$13.30
Summary
- Clime Investment Management believes PMV is significantly undervalued and initiated a position because we reinvested the proceeds into Premier Investments (PMV), taking the view PMV is significantly undervalued.
- Valuation gap: The current market price materially understates our assessment of sustainable cash flows and intrinsic brand value.
- Strong cash generation: PMV’s business generates predictable free cash flow that supports reinvestment and shareholder returns.
- Disciplined capital allocation: We expect continued buybacks and dividends alongside selective reinvestment, reflecting management’s history of returning capital.
- Resilient brand portfolio: Well-known retail brands with omni‑channel capabilities provide revenue diversification and recovery potential as consumer spending normalises.
- Operational upside: Margin expansion is achievable through cost efficiencies, SKU optimisation and operating leverage as sales recover.
- Balance sheet flexibility: Low leverage provides downside protection and optionality to fund growth or opportunistic capital returns.
- Near‑term catalysts: Share buybacks, improving retail trading, margin recovery and positive earnings revisions can unlock value.
- Risks: Key risks include prolonged consumer weakness, execution risk on cost initiatives and competitive pressure; position sizing reflects these risks.
Airlie Funds Management
16 Jan 2026
$13.25
Summary
- Airlie Funds Management believes Premier Investments remains a lower-risk, mispriced opportunity and continues to hold because the earnings weakness is concentrated, valuation is attractive at around 10x look-through EBIT, and upside outweighs the isolated headwinds.
- Profit guidance downgrade: Premier downgraded its first-half 2026 profit guidance, reflecting near-term operational softness.
- Post-divestment underperformance: Performance has disappointed since the sale of the apparel brands business, contributing to market scepticism.
- Issue concentration — Smiggle: Most of the problems are isolated to the Smiggle brand, which represents only a small portion of group earnings, limiting broader franchise risk.
- Attractive valuation: The business trades on roughly 10x look-through EBIT, implying a steep discount to the small industrials index and room for rerating if execution normalises.
- Capital allocation and optionality: The core portfolio and balance sheet provide optionality to support recovery or further shareholder returns over time.
- Patience and conviction: Given the concentrated nature of the headwinds and the valuation gap, Airlie remains a patient holder while monitoring Smiggle remediation and underlying trading trends.
Endeavor Asset Management
30 Sept 2025
$19.25
Summary
- Endeavor Asset Management updates their investment thesis on Premier Investments (PMV) following a slight underperformance in FY25 results.
- Peter Alexander shows strong sales in Australia and a solid start to FY26, continuing to be a standout performer.
- Smiggle is currently underperforming due to leadership gaps, but a new head is anticipated soon.
- The stock is considered attractive, trading on 17x P/E and 6x EV/EBITDA, with a yield exceeding 4%.
- Investment thesis is supported by the strength of Peter Alexander, potential turnaround for Smiggle, and increasing passive income from PMV's 25% stake in Breville.
Perennial Partners
30 Sept 2025
$19.25
Summary
- Premier Investments has experienced a decline of 13.8% following a disappointing earnings update from Myer, in which they hold a significant shareholding.
- The company provided a mixed earnings update, showcasing strong performance at Peter Alexander while reporting subdued numbers from Smiggle.
- Despite the mixed results, Perennial Partners views this as an opportunity to add to their holding in Premier Investments.
- The decision is supported by the strong brands and robust balance sheet of Premier Investments.
Perpetual Asset Management
30 June 2025
$20.23
Summary
- Perpetual Asset Management continues to hold its position in Premier Investments Ltd.
- Premier Investments lagged the benchmark over the June quarter, with shares struggling to gain traction.
- The company maintains a strong balance sheet and disciplined capital management.
- Despite subdued demand in the apparel sector, Premier’s control over its brand portfolio (including Peter Alexander and Smiggle) positions it well to navigate challenges.
- Premier is exploring international expansion opportunities for long-term growth.
- The company’s high level of online penetration provides flexibility in a changing retail landscape.
- Premier’s strong cash position and capital discipline enable it to pursue strategic growth while delivering returns to shareholders.
Datt Capital
11 June 2025
$20.23
Summary
- Premier Investments is considered a strong retail business with a truly global and addressable market.
- The recent deal with Myer is viewed as a significant game changer for the portfolio.
- There is potential for flagship brands like Smiggle and Peter Alexander to be spun off in the future.
- Spinning off smaller brands may allow management to pursue international growth more aggressively.
- Valuation is a key aspect influencing the hold position on Premier Investments.
- Datt Capital continues to hold because of the positive outlook on growth opportunities.
Yarra Capital Management
11 June 2025
$20.23
Summary
- Yarra Capital Management agrees with Emmanuel that Premier is a hold.
- Smiggle and Peter Alexander have performed well in Australia.
- Concerns remain about the unproven growth potential internationally.
- The market currently prices in a full value on international expansion, which Yarra Capital Management considers quite risky.
- The transaction with Myer has improved earnings quality by exiting other apparel businesses.
- 25% ownership in Breville presents a compelling global growth opportunity.
- However, Yarra Capital Management would prefer direct investment in Breville rather than through Premier.
Ausbil Investment Management
30 Apr 2025
$20.89
Summary
- Premier Investments (PMV) fell -8.0%, retracing gains after a solid 1H24 earnings beat.
- Performance driven by better than anticipated gross margins.
- The consumer discretionary environment remains difficult.
- PMV is a well-managed outfit with market-leading brands in Australia.
- Key brands include Peter Alexander and Smiggle, both offering overseas expansion potential.
- Ausbil believes the current strategic review will unlock significant value for shareholders.
Endeavor Asset Management
31 Jan 2025
$23.88
Summary
- Premier Investments (PMV) experienced a decline in January following its first half FY25 guidance.
- Mid-point revenue forecast stands at approximately $860 million, reflecting a 2.2 percent year-on-year decline.
- Projected earnings are anticipated to dropped by 20% to $160-$165 million.
- The underlying strength of the portfolio remains, particularly with strong performance seen in Peter Alexander.
- Challenges facing Smiggle, PMV’s highest margin business, indicate a potential for strategic turnaround through leadership changes.
- Recent structural adjustments grant greater operational independence to Peter Alexander and Smiggle.
- Integration of lower-margin apparel brands with Myer aims to streamline operations.
- Distribution of Myer shares to shareholders reinforces PMV’s focus on enhancing shareholder value.
- At a 15x P/E multiple, confidence in PMV’s long-term prospects remains strong.
- Peter Alexander’s robust growth trajectory combined with low market expectations for Smiggle recovery create compelling potential upside.
Perpetual Asset Management
31 Jan 2025
$23.88
Summary
- Premier Investments experienced a setback in January, with a decline of -4.2% following a disappointing trading update that fell below consensus expectations.
- The combination of Myer and Premier’s Apparel Brands (including Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti) presents a material value unlock opportunity for shareholders.
- This transaction was completed at the end of January, resulting in in-specie distribution of Myer shares to Premier shareholders.
- The transaction allowed Premier to release its significant franking account balance to shareholders, with the Myer shares being almost fully franked.
- Post-transaction, Premier will retain 25% ownership of Breville Group, 100% ownership of high-margin growth brands Peter Alexander and Smiggle, and maintain a net cash balance sheet.
Endeavor Asset Management
31 Oct 2024
$25.59
Summary
- Endeavor Asset Management updates their investment thesis on Premier Investments (PMV) following recent developments.
- Previously discussed in Growth Equities Portfolio’s August and High Conviction’s September newsletters.
- The belief that splitting PMV divisions like Smiggle and Peter Alexander could unlock shareholder value remains strong.
- In October, PMV’s board announced a binding agreement with Myer.
- Myer will issue new shares to PMV in exchange for PMV’s Apparel division and $82 million cash.
- This transaction gives PMV a 51.5% stake in Myer, to be distributed in specie to shareholders.
- The stake represents ~20% of PMV’s current share price, showcasing Premier's execution strength in retail.
- Following the announcement, PMV’s share price rose nearly 10%.
Blackwattle Investment Partners
30 Sept 2024
$23.35
Summary
- Blackwattle Investment Partners notes that Premier Investments (PMV) reported a decline in its mature Apparel Brands and Smiggle in July FY24, with drops of -6.4% and -7.4% respectively compared to FY23.
- Trading for the first 7 weeks of FY25 has been weaker than anticipated.
- Challenges are evident from sluggish household spending, particularly affecting younger families and Smiggle.
- Recent management changes at Smiggle, including the CEO's departure, have raised additional concerns for the division.
- A restructuring of the group is delayed as management evaluates the merger proposal with Myer (MYR).
- In contrast, Peter Alexander's performance remains positive with FY24 sales increasing by 6.2% year-on-year, entering the UK market with 3 new store openings planned before Christmas.
- The UK market represents a significant growth opportunity, with potential for expansion into additional countries.
- Excluding stakes in Breville (BRG) and Myer, PMV trades at a low double-digit PE, significantly below peers like Lovisa (LOV).
- Blackwattle anticipates that PMV's discount to peers will narrow as the company addresses its challenges, especially with Smiggle.
- The Fund's underweight position in the Financials sector, particularly major banks, has mitigated some performance drag from Consumer Discretionary names.
- Australian major banks are trading at PE premiums of 50-100% relative to global counterparts, limiting long-term growth due to high household leverage.
- Dividend yields for banks like CBA are becoming less attractive compared to other sectors, with current yields noted at 3.5% versus 4.9% for Telstra for FY25f.
Airlie Funds Management
30 Sept 2024
$23.35
Summary
- Airlie Funds Management notes a decline of 13% in Premier Investments in September from record highs.
- The company reported a mixed 2H24 profit result.
- Smiggle was a key detractor, with sales down 13% in H2.
- Peter Alexander continues to perform well, achieving a record sales result of $509m, up 6% YoY.
- The international rollout of Peter Alexander and the potential spinoff of apparel brands to Myer offer future growth prospects.
- Airlie Funds Management had trimmed their position before the result.
Endeavor Asset Management
30 Sept 2024
$23.35
Summary
- Endeavor Asset Management notes a 12.7% decrease in Premier Investments' share price due to the deferral of the anticipated demerger proposal.
- The demerger was delayed as a result of Myer's proposal to combine with PMV's Apparel Brands business.
- Despite these developments, PMV reported strong results from Peter Alexander but a softer performance from Smiggle, along with some middle management departures.
- Endeavor Asset Management remains confident in PMV's leadership, citing them as some of the best retailers in the country, with Solomon Lew serving as the largest shareholder.
- Overall, Endeavor Asset Management believes that their investment thesis is intact.
Endeavor Asset Management
31 Aug 2024
$26.57
Summary
- Endeavor Asset Management has entered Premier Investments (PMV), a leading fashion retailer conglomerate.
- PMV is chaired by successful Australian businessman Solomon Lew.
- Recent reporting season results from JB Hi-Fi, Universal Stores, Breville, and Myer showcased a gap between market expectations and actual performance.
- The results indicate that performance was not as bad as feared.
- PMV is supported by one of the best management teams in the ASX.
- Endeavor Asset Management considers PMV to be their preferred retail exposure.
Airlie Funds Management
30 June 2024
$22.96
Summary
- Premier Investments announced a potential merger of its Apparel Brands with Myer.
- The merger follows a strategic review by management focused on creating value for shareholders.
- Airlie Funds Management views the proposed merger positively.
- The merger aims to create a stable home for the Apparel Brands business.
- It allows for a separate listing of the higher-quality Peter Alexander and Smiggle brands.
- This announcement highlights the importance of partnering with aligned management.
Blackwattle Investment Partners
31 Mar 2024
$23.93
Summary
- Blackwattle Investment Partners updates their investment thesis on Premier Investments Ltd. (PMV.AX).
- Contributed to Fund outperformance due to the announcement of a strategic review.
- Strategic review will spinoff strong growth brands – Smiggle and Peter Alexander – over 2024-2025.
- This aligns with Blackwattle's belief that the market will place greater value on these brands due to international growth potential.
- Margins and profitability of Smiggle and Peter Alexander have not been disclosed separately, leading to under-appreciation in the market.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Premier Investments Ltd (ASX:PMV)?
Fund managers including Endeavor Asset Management, Blackwattle Investment Partners, Ausbil Investment Management, Datt Capital, Yarra Capital Management, Airlie Funds Management, Perpetual Asset Management, Perennial Partners and Clime Investment Management have invested in Premier Investments Ltd (ASX:PMV).
Why do fund managers invest in Premier Investments Ltd?
Fund managers invest in Premier Investments Ltd due to its strong brand portfolios, particularly Peter Alexander and Smiggle, which offer growth potential despite current challenges. The company has a robust balance sheet and recent structural changes aimed at enhancing operational efficiency and shareholder value. Premier's strategic review may also unlock significant value opportunities. With a solid dividend yield and attractive valuation metrics, such as a favorable P/E ratio, the risk/reward profile appears compelling for long-term investors.
What happened to Premier Investments Ltd (ASX:PMV)?
Fund managers recognize Premier Investments Ltd.'s strong brand portfolio, particularly the robust performance of Peter Alexander. Despite a mixed earnings report and challenges at Smiggle, the company is viewed as attractively priced with a P/E of 17x and EV/EBITDA of 6x, alongside a dividend yield exceeding 4%. Fund managers see potential in Smiggle's upcoming leadership change and appreciate the stability contributed by Premier's significant stake in Breville, leading them to maintain and increase their investments.
What is the short interest in Premier Investments Ltd (ASX:PMV)?
The short interest in Premier Investments Ltd (ASX:PMV) is 2.41% which makes it the 110th most shorted stock on the ASX. Of the 159.9M shares that Premier Investments Ltd has on issue, 3.8M have been sold short.
What does Premier Investments Ltd (ASX:PMV) do?
Premier Investments Limited (PMV) operates two specialty retail chains within the retail markets in Australia, New Zealand, Asia and Europe. The Group also has investment in listed securities, property holdings and money market deposits.