Myer profit doubles to highest level since 2014

Myer profit doubles to highest level since 2014

The Myer Centre Adelaide (via Facebook).

Department store Myer (ASX: MYR) has today announced its profits during the first half of its financial year doubled to hit $65 million - the group’s strongest NPAT performance since 1H14.

The 101.4 per cent profit increase during the 26 weeks to 28 January 2023 was supported by total sales growth of 24.2 per cent, representing 17.2 per cent stronger growth than pre-COVID sales in 1H20.

In total, sales came in at $1.88 billion - a record for the company which claims its transformation strategy has paid off for both the business and shareholders.

Of total sales, $382.3 million (20.3 per cent) were online sales - a 9.8 per cent decline on the prior corresponding period which was buoyed by lockdowns that forced customers to shop via Myer’s e-commerce platform.

Myer CEO John King said he was ‘very pleased’ with the first half results.

“Our omni-channel offer is strong, we continue to invest in MYER one, one of the country’s most effective retail loyalty programs and have also demonstrated our ability to capitalise on customers returning to stores and CBD locations through a targeted program of store space optimisation, a stronger merchandise offer, key refurbishments and improved customer service,” King said.

“Our ordinary fully franked dividend and additional special dividend demonstrates the confidence in the momentum being built as we move through FY23, with department store sales growth in the eight weeks post Christmas up 16.1 per cent over the corresponding period in the prior year; continuing to deliver sales momentum despite tightening economic conditions.”

A return to physical retail was mainly led by CBD stores - Myer’s strongest channel in the half - which saw sales rise by 53.7 per cent, offsetting softer online sales results.

“Our strong omni-channel offer continues to give us the ability to capture the opportunities that pure plays simply cannot, with strong growth in our store sales reflecting the re-balancing of sales post lockdowns, a return to CBD growth and a robust online business providing synergies in both digital and physical environments,” King said.

The trend of in-store shopping has continued in the eight weeks post-Christmas according to Myer, which said department store sales were up 16.1 per cent on the prior corresponding period in 2023.

“Like all retailers we remain cautious about the macro-economic environment, however, we are pleased with the momentum we are generating through the customer first plan and have a strong pipeline of initiatives still to come, which will ensure we are well placed for the future,” King said.

Shares in MYR are up 11.52 per cent in early trade to $1.06 per share.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

Myer shares hit six-year high as in-store buying boosts first-half sales to a record

Myer shares hit six-year high as in-store buying boosts first-half sales to a record

Myer Holdings (ASX: MYR) shares spiked to a six-year high this morn...

Myer’s recovery gathers momentum as online sales ramp up

Myer’s recovery gathers momentum as online sales ramp up

Growth in Myer Holdings’ (ASX: MYR) post-pandemic recovery co...

Myer gears up to handle $1 billion in online sales with new automated distribution centre

Myer gears up to handle $1 billion in online sales with new automated distribution centre

Department store retailer Myer Holdings (ASX: MYR) is gearing up to...

Myer to shut down Blacktown store

Myer to shut down Blacktown store

Myer (ASX: MYR) has announced its fifth store closure in three year...