Labor Government earns Premier Investment chair Solomon Lew’s ire for ‘mismanagement of economy’

Veteran retailer Solomon Lew has criticised the Federal Government for what he says is mismanagement of the economy because everyday Australians were paying the price.

The chair of Premier Investments — the name behind popular sleepwear brand Peter Alexander and kids stationery chain Smiggle — has joined a growing list of retailers painting a bleak picture on consumer spending.

His comments comes just days before the Reserve Bank is widely tipped to deliver a fourth interest rate hike in 2026.

“Are we happy about interest rate rises? Of course not, but it’s not our doing,” Mr Lew told media on Thursday as Premier reported a sharp drop in annual profit.

“It’s the mismanagement of the economy, and unfortunately, the populace are paying for it. And so time will tell, but you know there are not a lot of happy people out there.”

Premier’s 2026 net profit slipped to $129.2 million, down from $338.2m a year ago, which included the costs to shut down Peter Alexander’s UK operations, along with the separation of the retailer’s five labels under the Apparel Brands umbrella that were to Myer in 2024.

While Peter Alexander sales growth slowed to 3.2 per cent, it still hit a record $565.3m. But Smiggle’s store closures dragged sales down nearly 13 per cent to $230.2m.

Mr Lew said despite challenging retail conditions, Premier “managed to come through the last 12 months pretty well”. Earnings of $175.9m were in-line with guidance provided in August.

Mr Lew said he was optimistic about the peak trading periods of Black Friday and Christmas, saying Premier was “locked and loaded”.

“We’re primed for the Christmas, Black Friday, and back-to-school, and we are in stock, and our products are here. If not here, they’re a couple of days away,” he said.

Mr Lew expects shoppers to open up their wallets during Christmas despite higher cost-of-living pressures.

“Usually at Christmas time, people seem to find the cash to spend,” he said.

It was revealed on Wednesday that Mr Lew would finally take up his role as a non-executive director at Myer, where he is the biggest shareholder. It marks Mr Lew’s return after a 24-year absence.

“I feel very positive. I think they’re looking forward to my contribution,” Mr Lew said on Thursday.

Premier has embarked on a strategic overhaul of Peter Alexander and Smiggle. Part of that includes pulling the pin on Peter Alexandar’s three UK stores, which cost Premier’s bottom line $9m in closure expenses.

At Smiggle, the company has set a plan to reclaim the six to 12-year-old customer market.

Premier wants Smiggle to become “a key destination for back-to-school essentials, lifestyle and innovative and fun gifting products”.

It is also developing lifestyle, bath and body and personalisation ranges slated to launch during the first half of this year.

For the first seven weeks of 2027, Premier retail division’s sales and gross profit dollars on a like-for-like basis were flat.

“These first seven weeks account for only a relatively small proportion of first-half trading, with the key gifting and peak trading periods still ahead,” Premier said.

RBC Capital Markets analyst Michael Toner said the early first-half trading update suggested the retail segment was “tracking largely in-line to marginally ahead of consensus, with a clean inventory position to start FY27”.

Premier declared a final dividend of 36¢ a share, down from 50¢ a year earlier.

Mr Lew declined to provide further information regarding the investigation into former Smiggle boss John Cheston, who was sacked over allegations of serious misconduct.