Pyjamas seller Peter Alexander, owned by Premier Investments, has posted record annual sales, but its sister company Smiggle needs more attention.

Premier Investments, the owner of the Smiggle stationery brand and Peter Alexander sleepwear label, has reported a sharp decline in annual profits, with earnings halved due to falling sales and costs associated with the closure of its Peter Alexander stores in the United Kingdom. The company met its previously downgraded sales guidance of $795.5 million for the year ending July 25, representing a 2 per cent decrease across its two retail businesses. The decline in performance was attributed to the strategic decision to close underperforming stores in the UK market, which contributed to higher operational costs during the transition period. Solomon Lew, the company's leader, has acknowledged the challenges faced by the business in navigating the changing retail landscape, particularly in international markets. The company's annual report highlighted that the closure of the Peter Alexander stores in the UK was a necessary step to streamline operations and focus on more profitable segments of the business. Despite the challenges, Premier Investments remains committed to its long-term growth strategy, emphasizing the importance of adapting to consumer trends and market dynamics. The company's performance during the reporting period reflects broader trends in the retail sector, where businesses are increasingly facing pressure from online competition and shifting consumer preferences. This report comes as part of the ongoing earnings season for major Australian retail companies, with Premier Investments joining other industry players in reporting mixed results. The company's management has indicated that future strategies will focus on optimizing store networks, enhancing digital capabilities, and exploring new market opportunities to drive sustainable growth. The financial results for the year to July 25 underscore the complexities of managing a diversified retail portfolio in a rapidly evolving market environment. While the immediate impact of store closures has been felt in the short-term financials, the company believes these measures will position it for stronger performance in the medium to long term. Investors and analysts are closely monitoring the company's progress as it implements these strategic changes to address the challenges of the current retail climate.

Smiggle revealed last month it was closing for good with prices slashed in half at the Middlesbrough Hill Street Shopping Centre location

The store in Middlesbrough's Hill Street Shopping Centre will close on January 4

Smiggle, Dotti and Jay Jays are all departing The Mall. PHOTO: PHILIP CHANDLER Three side-by-side chain stores near the top of Queenstown Mall are for sale as their leases expire.