Fashion stationery chain exposed to cost-of- living pressures.

 

Fashion stationery and gift chain Smiggle has suffered a sales slowdown, driven by rising cost-of-living expenses impacting young families.

 

Parent firm Premier Investments posted a decline in sales for the fiscal first half, with the results dragged down by a double-digit drop at Smiggle.

 

The company’s retail division recorded sales of $455 million for the six months ended January 25, representing a 1.8 per cent decrease.

 

Sales at Smiggle dived 14.5 per cent to $157.3 million as customers were exposed to increased cost of living pressures in “a challenging global discretionary retail environment”. 

 

The core market of young families is among the worst impacted by the current inflationary economy.

 

The brand operated 307 stores across its ‘proprietary’ markets of Australia, New Zealand, the UK, Ireland, Singapore and Malaysia at the end of the first half.

 

On the bottom line, net profit before tax fell 12.7 per cent to $148.4 million.