Myer’s recovery gathers momentum as online sales ramp up

Myer’s recovery gathers momentum as online sales ramp up

Myer CEO John King.

Growth in Myer Holdings’ (ASX: MYR) post-pandemic recovery continues to gain ground with the company revealing it is set to deliver an increase of up to 17.3 per cent in sales over the second half of FY22 with the department store's online sales outpacing the rest of the business.

Myer has forecast total group sales of between $2.985 billion and $2.995 billion for the FY22 full year, representing an increase of between 12.3 per cent and 12.7 per cent on FY21.

But its online sales have surged to between $715 million and $725 million (up 32.5 per cent and 34.4 per cent respectively) to now represent 24 per cent of total sales.

This time last year, the online business accounted for just over 20 per cent of group sales, putting the company on track to deliver on its target of $1 billion in online sales annually.

Myer expects to deliver a net profit after tax of between $23 million and $28 million for the June half-year, up from $8.8 million a year earlier.

The full-year NPAT is forecast to land between $55 million and $60 million, although this time it is without the aid of JobKeeper which supported the FY21 result of $51.7 million.

Myer CEO John King says the company’s Customer First plan continues to drive growth in all categories, despite more trading days lost due to COVID during the year.

“The momentum in the second half in terms of sales growth both in-store and online, profitability and strengthening of our balance sheet places us well as we go into the new financial year,” he says.

The bottom line is still subject to potential significant items ahead of the release of the company’s audited results in September.

Myer’s online business has grown nearly fourfold in the past four years to become one of the largest online retail businesses in Australia.

Online sales have played a significant role in Myer’s turnaround in recent years, leading the company to invest in a new fully automated robotic national distribution centre (NDC) in Melbourne as it edges closer to its target of delivering $1 billion in online sales annually.

Myer shares were up more than 17 per cent in early trading after releasing its forecast sales figures for FY22.

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