To be in print in 'The Australian' tomorrow - an extract:"Major...

To be in print in 'The Australian' tomorrow - an extract:

"Major fashion brands owned by billionaire Solomon Lew have been hit by plunging sales and lower earnings due to an economic downturn, sparking a fresh challenge for new Myer boss Olivia Wirth as she weighs a buyout deal for the retail businesses.

Leaked budgeting and sales documents flowing from the due diligence process now under way between Myer and Mr Lew’s Premier Investments, and seen by The Australian, show all of the apparel brands within Premier – Portmans, Just Jeans, Dotti, Jay Jays and Jacqui E – have suffered negative sales growth and collectively are millions of dollars behind their budgeted or projected earnings targets.

According to the documents, Portmans recorded a 10 per cent fall in sales for the winter half to $68.043m, putting it well behind its budget target of just over $75m in sales.

Just Jeans (the largest of the five apparel brands) booked a 0.4 per cent sales fall to $136.326m. Jacqui E had a sales drop of 8.3 per cent to $33.381m to place it well behind its budget while sales at Jay Jays for much of the first 24 weeks of calendar 2024 were down 4.8 per cent to $69.2m, or 4.7 per cent behind budget.

The apparel brands are believed to account for the majority of the almost $800m in goodwill and brands value sitting on Premier Investments’ books – the bulk of which would shift to Myer’s accounts if it agrees to buy the division from Mr Lew, and which could face impairments and writedowns if woeful retail trading conditions continue..."