Premier Retail reported 1H25 sales down 1% and EBIT fell 20%, including the impact of the Peter Alexander’s UK expansion. We forecast sales growth of 4.5% in 2H25e with a smaller gross margin decline. Cost growth will continue, leading to EBIT margins dropping by 778bp to 21.9% for FY25e. Premier Investments will continue to focus on improving Smiggle’s performance which is showing early signs of improvement.