I'm always on the lookout to buy pieces of Australia's top shares. Premier Investments Ltd (ASX: PMV) is one of the stocks heavily on my radar.
Following divestment of numerous apparel brands to Myer Holdings Ltd (ASX: MYR), there are now three businesses within the Premier Investments business – Peter Alexander, Smiggle and a stake in Breville Group Ltd (ASX: BRG).
The recent FY26 results highlighted both the problems and opportunities the business is currently facing.
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Resilient earnings generation
It reported operating profit (EBIT) from its retail division of $175.9 million, while group profit before tax (PBT) came to $211.1 million.
Smiggle sales were down 12.9% to $230.2 million, amid a 13% reduction in store numbers to 268 since the start of FY25.
Smiggle is trying to reclaim the six to 12-year-old customer market through a refreshed product, better marketing and visual merchandising to drive sustainable and profit growth.
Peter Alexander is certainly the highlight of the business – it grew sales by 3.2% to $565.3 million.
The launch of a 'Peter's Dreamers' – a loyalty program – in October 2025 continues to exceed management's expectations with the program attracting over 1.4 million customers in the first 10 months.
Peter's Dreamers customers contributed more than 60% of brand sales during FY26, at an average transaction value of more than 40% above non-members. Management suggested there are further opportunities to provide increased data and insights to enhance the customer experience.
New store opportunities
I think its expansion potential is key to why it's one of Australia's top shares.
Pleasingly, during FY26, the company opened four new stores and expanded or relocated five others, with further investment in fit-outs. At least five new store openings and one relocation/expansion are confirmed for the first half of FY27.
Additionally, the company identified 15 more opportunities for both new and larger-format stores in existing markets to better showcase its broader product offering.
While the UK expansion didn't work out as intended, Peter Alexander continues to explore international wholesale opportunities with 'global best-in-class' wholesale partners.
This article isn't about Breville, but I'm also confident about the long-term prospects of that business with how it's expanding overseas in markets like China and South Korea. This could be an important driver for the Breville share price as well as potentially increasing the Breville dividend in the coming years.
Premier Investments share price valuation
According to the projection on Commsec, the Premier Investments share price is valued at just 12x FY27's estimated earnings. It could pay a FY27 grossed-up dividend yield of 9.5%, including franking credits, at the time of writing.
Given how Peter Alexander could continue to grow in the coming years, I think the company's valuation is very cheap right now, especially given the rewarding dividend yield.
I think it's one of Australia's top shares to buy right now.
