Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Although Myer (ASX: MYR) has reported a strong period of trade in the five months leading up to January, the retail giant warns Omicron has negatively impacted business into the new year.

The retailer reported total sales increased by 12.3 per cent year-on-year, with online sales surging by 54.3 per cent and making up more than a quarter of transactions.

Department store sales in the lead-up to Christmas were strong, as Myer recorded a 17.1 per cent increase for the two months leading up to January compared to the same time last year.

As the Omicron wave continues to impact foot traffic, the company is looking to focus on growing its online channel.

“The results demonstrate the continued momentum of our Customer First Plan and the resilience of the business to overcome the initial months of lockdowns and still record significant sales growth during this period,” said Myer CEO John King.

“Whilst we are seeing Omicron impact sales post-Christmas, we will continue to focus on growing our strong online business, ongoing engagement across our MYER one program and disciplined management of costs and inventory.”

Myer notes that although sales performance led to improved operating gross profit it was offset by higher costs of doing business, which was primarily due to the absence of JobKeeper that was received in the prior corresponding period.

The retailer also reported 27 per cent of bricks-and-mortar trading days were lost during the first quarter due to COVID-19 mandated store closures.

Shares in MYR are up by 6.7 per cent to $0.40 per share at 12:47 AEDT today.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

Sydney home theatre retailer Life Style Store enters administration with 35 jobs lost

Sydney home theatre retailer Life Style Store enters administration with 35 jobs lost

A North Parramatta store that describes itself as the "largest...

TrueState raises $1.5m towards AI app template platform

TrueState raises $1.5m towards AI app template platform

Sydney-headquartered artificial intelligence (AI) app template star...

Sushi Sushi catches a new fish with Sushi Musa acquisition

Sushi Sushi catches a new fish with Sushi Musa acquisition

One of Australia's leading quick service retail (QSR) food chai...

Crypto platform Block Earner not out of the woods as ASIC appeals court ruling

Crypto platform Block Earner not out of the woods as ASIC appeals court ruling

Cryptocurrency trading app Block Earner has been brought back into ...