UBS has slashed its earnings estimates for Solomon Lew’s Premier Investments to account for the continued appreciation in global cotton prices.

Analyst Ray David has lowered his earnings per share estimates for Premier Investments by 1 per cent, 13 per cent and 6 per cent in 2011, 2012, 2013, respectively. He expects cotton to jump from 24 per cent of cost of goods sold in 2010 to over 37 per cent in 2012.