“We haven’t said categorically that we are demerging … there is a lot more work ongoing,” said the veteran retailer.

The company has paused its hunt for a new chief executive officer afterRichard Murray resigned following the announcement of the strategic review,with long-standing chief financial officer John Bryce stepping in as interim chief executive.

“Until we decide on the merger,we’re very comfortable and leaving things as they are.”

TheBlack Friday sale held last weekend was one of the biggest in Australia’s history as various retailers and brands kicked off their deals earlier and discounted more heavily than usual.

Data from ANZ shows non-food retail spending was up 1 per cent over that weekend (Saturday and Sunday) as consumers flocked towards electronics in particular,with spending in this category up 6 per cent compared with last year. Department store spending was 5 per cent higher than last year,but clothing spending declined 10 per cent.

“The Black Friday sales period is being stretched out,and non-food retail spending started accelerating in mid-November when many retailers kicked off their Black Friday sales. This is part of a broader theme playing out,” ANZ economists Madeline Dunk and Adelaide Timbrell said in their latest economic insight note.

“There’s been a noticeable lengthening of promotional events and discounting,as businesses try to entice households to spend given the current cost-of-living pressures.”

ABS data released earlier this week showed that inflation fell from 5.6 per cent in September to 4.9 per cent in October in a sign that will ease the likelihood of another interest rate rise. Rent dropped from 7.6 per cent to 6.6 per cent as the federal government’s changes to Commonwealth rent assistance started filtering through the property market.

Macquarie senior research analyst Marni Lysaght pointed out that Premier’s revised $200 million earnings guidance represented a 10 per cent decline on the previous corresponding period.

“We infer that[the first half of fiscal 2024 trading to date] has been weak outside Black Friday,” she wrote in a note on Friday. The company maintains a neutral rating on the company. “We have been cautious because of the soft macro climate.”

Analysts from MST Marquee,which has a “hold” rating on the business,said the higher earnings expectation was unusual so early into the half-year period and surprising.

“The lack of sales commentary makes it more difficult to gauge the drivers of the earnings change,” analysts Craig Woolford and Garth Francis wrote in a note.

“[It] suggests to us the company has taken decisive action on product margins and operating costs,anticipating weaker sales … Profit margins are falling,but there is also cost reductions as a partial offset.”

Regarding the strategic review,MST Marquee said the demerger was likely the preferred decision.

“The unknown remains the ability to scale Peter Alexander beyond Australia/New Zealand and the scope to grow a wholesale model globally in Smiggle. The core apparel brands are shrinking floor space and command a lower multiple in our view.”

The Business Briefing newsletter delivers major stories,exclusive coverage and expert opinion.Sign up to get it every weekday morning.