Global expansion plans in wake of record sales.

 

Fashion stationery retailer Smiggle has reported a record year of global sales and a strong start to 2024, which will see the Australian-owned business expand into the Middle East and other markets.

 

Full sales were $320 million, up 22.4 per cent on FY22. 

 

Smiggle’s parent company Premier Investments said partnerships with the likes of Harry Potter, Minecraft, Mickey & Minnie, AFL and Matildas, boosted sales in the back-to-school period.

 

Premier said Asia, Australia and New Zealand have “rebounded strongly” given global travel has been returning to normal levels. 

 

Smiggle has signed an agreement with an existing wholesale partner to open 60 freestanding stores in the Middle East over the next decade.

 

The stores will be opened in the UAE, Qatar, Kuwait, Oman, and Bahrain.

 

Premier Investments, owner of the Just Group, said the partner intends to roll out three Smiggle stores in the UAE and four in Qatar before Christmas. Another 13 stores are planned for rollout in FY24.

 

Meantime, Premier Retail’s two key subsidiaries Peter Alexander and Smiggle are tipped to be the likely candidates for demerging, according to Macquarie analysts in a note to investors.

 

This is due to both brands having higher margins and growth prospects compared to other brands in the group.

 

The demerging of Peter Alexander and Smiggle would unlock an estimated $1 billion of value potentially available for capital management.