👉 Background: Premier Investments is the major retailer that owns big brands like Peter Alexander and Smiggle. Not to forget its old-school brands like Just Jeans, Jay Jays, Portmans and Dotti.

👉 What happened: While Premier Investments' financials are still subject to their final audit... they've given a bit of a heads up: sales jumped 9.7% year on year to over $1.6 billion. And, its earnings before interest and tax is also expected to jump at least 6% higher.

👉 What else: But after delivering the news, Premier Investments' CEO, the ex-CEO of JB HiFi, dropped the mic and announced he's stepping down. On that note, Premier foreshadowed a "strategic review" that could split up the company into 3 main units - Peter Alexander, Smiggle and the rest.

What's the key learning?

💡When a company's got a superstar division or divisions, sometimes you need to set it free to help it shine.

💡Premier Investments is currently valued at around $3.9 billion. While estimates vary, brokers at Unified Capital Partners believe that:

• Peter Alexander is worth $1.59 billion
• Smiggle is worth just over $1.19 billion
• The rest is worth around $915 million, making the total value of companies at nearly $3.7 billion

Throw on top of that Premier's cash as well as its stakes in Myer and Breville - the total company could be worth around $5.3 billion - which is 37% higher than its current price.

💡And given Premier’s announcement today and the 12% increase in share price, maybe this demerger is just what their investors are asking for.

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