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 CEO John King

Myer Holdings (ASX: MYR) shares spiked to a six-year high this morning after the company revealed record revenue for the first five months of FY23, with an easing of online sales highlighting the rush back to in-store purchases.

The department store retailer’s shares peaked at 93.5c, levels not seen since early 2017, and more than three times higher than the 12-month low of 29c in June last year.

While Myer has not given actual sales figures for the period, the company says it is on track to post NPAT of between $61 million and $66 million for the first half of FY23, up between 89 per cent and 104 per cent compared with the same time last year.

That comparison is buoyed somewhat given the retailer suffered from lockdowns in the previous corresponding period, but Myer notes the forecast result is still set to land between 54 per cent and 67 per cent higher than the first half of FY20, prior to the pandemic.

Myer notes that its interim reporting period closes on 28 January, with the group’s stocktake sale still underway.

Myer has revealed group sales for the first five months of the financial year are 24.8 per cent higher than the previous corresponding period. Store sales are up 37.9 per cent while online sales were 9.4 per cent lower.

Despite a dip in online sales in the current period, Myer says online purchases remain 39.9 per cent higher than the same time two years ago, highlighting the transition to digital shopping by consumers.

Online sales represent 20.1 per cent of total group sales, down from 27.9 per cent this time last year.

“The results, which reflect our best sales on record for the first five months, are particularly pleasing and more importantly also reflect improved profitability within the business,” says Myer’s CEO John King.

“As with most retailers, we remain cautious on the macroeconomic environment for the remainder of the calendar year but are equally confident in the continuing momentum we have within the Customer First Plan and a range of initiatives we are executing.”

Myer shares were trading at 89.5c, up 4.5c, at 12.34pm AEDT.

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