Fashion
Billionaire businessman Solomon Lew has unveiled a new target of 100 new Smiggle UK stores by Christmas.
A further 40 to 60 of the popular stationery stores are planned to open in the UK each calendar year from 2017 to 2019.
Smiggle is the highlight of Mr Lew’s retail investment arm Premier Investments which owns seven brands, including its other core brand, designer sleepwear Peter Alexander.
Mr Lew, the chairman of Premier Investments, said he was confident Smiggle would conquer the world.
“This brand will be successful in every country in the world where there are children,” he said.
“This market is going to grow and grow and become a world brand.”
Smiggle’s global sales rose 46.5 per cent in the six months to January 30 with strong like-for-like sales in all four countries it trades in, including Australia, New Zealand and Singapore.
Mr Lew said the standout was Smiggle UK which continued to trade ahead of expectations.
The UK business had 42 stores by the end of the half and is on track to achieve 200 stores and $200 million in sales within five years.
Smiggle’s rollout in Asia is also on track with its first Malaysian store to open in April and its first Hong Kong store set to open in May.
Malaysia and Hong Kong is expected to have a total of 50 stores in five years.
All of Premier Investments’ brands, including Just Jeans, Dotti, Portmans, Jacqui-E and Jay-Jays, recorded like-for-like sales growth in the first half.
Peter Alexander’s sales grew 22.5 per cent, with eight new store openings in Australia and New Zealand during the half.
Total group sales rose 15.1 per cent to $565 million and net profit climbed 26 per cent to $71.5 million in the half.
Mr Lew said the company’s balance sheet was strong and the group remained open to potential future acquisitions.
Premier’s shares closed 60 cents, or 4.1 per cent, higher at $15.31.
PREMIER’S PROFIT JUMPS ON STRONG SALES:
* Net profit up 26pct to $71.5m
* Revenue up 15.1pct to $565m
* Fully franked interim dividend up two cents to 23 cents
SMIGGLE STORE COUNT IN FIRST HALF:
* 126 in Australia
* 23 in NZ
* 18 in Singapore
* 42 in the UK
