I always have my eye out for when Australia's top shares are trading at a discount.
And this one has caught my eye recently.
Premier Investment Ltd (ASX: PMV) is an Australian company that owns and operates specialty retail brands Peter Alexander and Smiggle, and holds a stake in Breville Group Ltd (ASX: BRG).
The company underwent a major restructure in 2025. It merged its apparel brands business into Myer Holdings Ltd (ASX: MYR), and distributed stakes to streamline its business into its two core brands with the highest pricing power.
Image source: Getty Images
What's the latest on Premier Investment shares?
At the time of writing on Wednesday morning, the ASX consumer discretionary shares are up around 0.5% to $13.66 each.
It's been a volatile ride for the shares over the past couple of years. They crashed lower in 2025, and the sell-off continued in 2026 until the stock reached a multi-year low in late September. Since then, the shares have rebounded by around 22%. They're now just 1% lower year-to-date but 24% lower than 12 months ago.
The company's shares were battered by a combination of higher inflation, cost-of-living pressures, and its corporate restructure.
But it looks like the worst is finally over, and the company's reset and calibration have paid off.
Last month, Premier Investments posted its FY26 result. The report included a 2.8% decline in total revenue and a 10.3% decline in NPAT. However, the company ended the financial year with $391.4 million in cash on its balance sheet.
But it's worth noting that FY26 was the first full financial year since the company's sale and restructuring in January 2025. With that in mind, the results stand up well.
What was most encouraging was that Premier Investments' Peter Alexander brand continued to perform strongly. The business recorded $565.3 million in sales (up 3.2%), aided by the successful launch of its 'Peter's Dreamers' loyalty program.
But, subsequent to year-end, the group announced the closure of its three UK Peter Alexander stores due to sustained weak trading in that market. An impairment expense of $7.7 million was recognised.
In contrast, Smiggle recorded global sales of $230.2 million, down 12.9% from the prior year. However, the company has embarked on a strategic brand repositioning, relaunching Smiggle to target its original core 6-12 age group to reinvigorate renewed growth.
Why can it be considered a top share?
The company's leaner structure is now focused on two key Australian brands, and the company has strong plans for growth.
Another reason the company is a top investment is its 25.2% stake in Breville Group, valued at around $1.08 billion. Combined with the company's $391.4 million in cash at the end of FY26, this looks like a rare value opportunity for investors.
Because the business is sitting on so much liquidity, the board was also able to pay a 45-cent final full-franked dividend to its shareholders, the first payout since its restructure.
And it's also trading at a discount…
TradingView data shows that the majority of analysts have a buy/strong buy rating on the retailer's shares. The $16.08 average target price implies a 18% upside at the time of writing. And the $23.16 maximum target price implies the shares could jump 69% higher over the next 12 months.
At the current $13.66 trading price, I think Premier Investments is a top share trading at a steep discount.
