Solomon Lew Targets Smiggle Turnaround As Growth Delayed Until 2027

Retail billionaire Solomon Lew is aiming to revive Smiggle’s performance, but a return to sustained growth is not expected for at least another year.

As originally reported in The Australian, the stationery retailer, once a standout performer within Premier Investments, is undergoing a reset following a strategic review and a period of leadership instability. The company has now appointed Georgia Chewing as managing director after she previously stepped in as interim chief operating officer. With the new appointment, interim chief executive John Bryce will return to his primary role as chief financial officer of Premier Retail.

The leadership changes come after the departure of former Smiggle boss John Cheston in 2024, marking a turbulent period for the brand.

Premier Investments, which also owns sleepwear label Peter Alexander, is navigating a challenging retail environment shaped by cost-of-living pressures, higher interest rates and increased fuel costs linked to global tensions. These factors have weighed on consumer spending and affected overall performance.

Image from Peter Alexander

For the first half of the financial year, the group reported a decline in net profit of 13.1 per cent to $155 million, including discontinued operations. Revenue for the period slipped 1.1 per cent to $703 million, while pre-tax earnings fell to $182 million from $197 million previously, in line with earlier guidance.

The company has reinstated its interim dividend, with shareholders set to receive 45 cents per share in August.

Performance across the group’s brands has been mixed. Peter Alexander continued to grow, with sales rising 4.9 per cent to $477 million and maintaining strong momentum over recent years. In contrast, Smiggle recorded a 10.7 per cent drop in sales to $215 million, reflecting both softer demand and a reduction in store numbers as part of efforts to streamline operations.

Despite the decline, Smiggle’s wholesale business has shown some resilience, supported by agreements in markets such as the Middle East and Indonesia.

Lew said the review has resulted in a more focused and efficient business, with an emphasis on improving responsiveness to changing consumer behaviour. He indicated that Smiggle’s recovery plan will centre on refining its product offering, simplifying operations and repositioning the brand, with growth targeted for the 2027 financial year.

Premier Investments also holds significant assets outside its retail operations, including a stake in appliance maker Breville valued at $1.13 billion, a Melbourne office tower and substantial cash reserves.

Smiggle’s recent struggles follow a period when it was considered for a potential spin-off due to its strong performance. However, declining sales and internal disruption have shifted attention toward rebuilding the business.

Looking ahead, the company said trading for Peter Alexander has been stronger than expected early in the second half. If conditions remain stable, Premier Retail is forecast to deliver full-year underlying earnings of about $183 million.

Investor sentiment appeared to improve following the results, with shares rising 7.11 per cent to $13.41 in early trading.