Premier Investments chairman Solomon Lew has expressed concern over the Albanese government’s economic management, warning that it could prompt the Reserve Bank of Australia (RBA) to increase interest rates at a particularly difficult time for consumers and businesses. Lew, whose retail portfolio includes the Peter Alexander and Smiggle brands, said rising rates are an unwelcome development but attributed the pressure on monetary policy to federal government missteps.

Speaking amid a major strategic overhaul at Smiggle, which saw sales decline by 12.9 percent in fiscal 2026, Lew noted widespread dissatisfaction with the federal government's handling of the economy. “Many Australians are not happy,” he remarked, emphasizing the unpopularity of the government and suggesting this sentiment is reflected in current economic conditions. While he acknowledged that the RBA is making decisions in the best interest of the community, he underscored that the government has a responsibility for the economic environment that could force further rate hikes.

Economic analysts anticipate the RBA may raise interest rates by 25 basis points at its upcoming meeting, with the possibility of another increase before the end of the year to curb inflation.

Lew’s Premier Investments, which oversees Peter Alexander, Smiggle, and other assets, reported a mixed fiscal 2026 performance. The company reduced its final dividend from 50 cents to 36 cents per share, bringing total dividends for the year to 81 cents, up from 50 cents the previous year and exceeding analyst expectations. Premier Investments maintains strong liquidity with cash reserves of $391 million and holds a $1.08 billion stake in kitchen appliance maker Breville.

Smiggle, once a standout performer for Premier, suffered from declining sales exacerbated by management errors prior to the current ownership’s strategic revamp. Sales dropped to $230.2 million, partly due to a 13 percent reduction in store numbers. The brand is undergoing a “reset” initiative aimed at reconnecting with younger consumers, including a relaunch strategy that Premier describes as a planned transition through the second half of fiscal 2026.

By contrast, Peter Alexander performed well, with sales increasing 3.2 percent to a record $565.3 million. Growth was bolstered by the introduction of its loyalty program, Peter’s Dreamers, which now represents more than 60 percent of brand sales and achieves transaction values over 40 percent higher than non-members.

Lew expressed cautious optimism heading into the critical trading periods of Black Friday, Christmas, Boxing Day, and back-to-school sales, noting the fresh inventory arriving at Smiggle and consumer enthusiasm sparked by recent high-profile events such as the NFL opening round in Melbourne. Despite the challenging economic climate, Lew said Premier is “locked and loaded” and poised to meet its financial targets as fiscal 2027 begins.

For the full year to July 25, Premier reported a 0.9 percent decline in revenue to $844 million. Net profit narrowed sharply to $129.2 million from $338.2 million the previous year, largely reflecting the sale of the company's apparel division to Myer. Profit from continuing operations decreased 10.3 percent to $129.2 million. Shares in Premier Investments rose 79 cents to $11.95 following the results.