In its full year results to July 26, the retailer said its Smiggle stationery and Peter Alexander fashion labels were the main growth engines, boosted by the expansion of the stores overseas.

But the chief executive Mark McInnes said he planned more stores in Australia and would happily compete with the new rivals to its Portmans, Dotti and Jacqui E labels, being Forever 21, H&M and Zara, among others.

Retail leasing agents said the Premier expansion was positive for the sector as it provided rental competition in its targeted locations.

McInnes said, when he joined the group, that he planned not to renew leases for some non-core locations and focus on the shopping centres undergoing redevelopment. Analysts said the strategy was working.

Over the year, Smiggle UK successfully launched, with eight stores currently trading and a total of 18 stores to be open by Christmas 2014.

"Across Australia, eight new standalone Peter Alexander stores were opened, nine concession stores were launched and a further four stores were expanded to larger formats. Expanded childrenswear merchandising fixtures were also added to 27 stores to support the significant growth in this category during the year," McInnes said.

He said the group intends to open four new Peter Alexander stores in Australia and two new stores in New Zealand before Christmas. Management is targeting between five and 10 new stores in Australia during 2015 and 2016 and between three and five stores in New Zealand over the same timeframe.

"In addition, we continue to invest in Peter Alexander's existing footprint with refurbishments planned for Westfield Sydney, Chadstone, Doncaster and The Ivy, Sydney, as well as lighting upgrades, larger counters and improved point of sale equipment in existing high volume key locations," he said in the results.

The analysts at Moelis & Co said the underlying earnings before interest and tax (EBIT) margins of 10.4 per cent compared to 10 per cent on the previous corresponding period were a good outcome given the unseasonably warm weather, post budget slowdown and competitive environment driven by a 38 basis point decline in the cost of doing business (CODB).

"Internal focus remains on the meaningful expansion opportunities available for the two growth [Smiggle and Peter Alexander] brands, accounting for a combined 25 per cent of sales, and potential for 200 Smiggle stores over the next five years generating sales of $200 million and profit margins in line with Australia," the analysts said.

"There is also a three year plan to grow Peter Alexander by 40-50 per cent.

McInnes said there was also to be a redesign of the stores to build its multi-channel offering.

The group will work with landlords in launching a "store to door" service across the portfolio of brands, allowing the sales people to fulfil on opportunities in-store with items that are out of stock, ensuring they never miss a sale.

He said Portmans is currently trialling a "click and collect" service in Victoria which, if successful in driving new sales, may provide further growth opportunities for the group.