Myer profits soar

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By Published On: March 14, 20230 Comments

Myer’s first half results show the company has doubled it profits with the strongest NPAT performance in nearly ten years at $65 million.

On Thursday, Myer revealed that for the six months period to January 29, 2023, total sales growth soared to $ 1.88 million, a growth of 24.2 percent. Net Profit after tax grew 101 percent to $65 million, an increase of $ 32.7 million.

Commenting on the results, Myer’s CEO, John King, said: “We are very pleased with the strength and quality of our first half results, with a best-on-record first half sales performance, significantly improved profitability and a balance sheet that continues to provide a strong foundation for future growth. The result reaffirms our view that the Customer First Plan is the right strategy, which continues to deliver strong outcomes for our business and shareholders.”

Myer’s ecommerce offerings performed well in the face of customers returning to in store stopping. 20.3 percent of total sales, or $382.3 million came from online sales,  a decline of 9.8 percent which Myer says represents a CAGR of 31.5 percent from the last pre-Covid period of 1H20. CODB was reported to make up $442.5 million or 23.5 percent of total sales, representing an improvement of 126 basis points. Myer also reported a stronger balance sheet position with net cash up $50 million to $267 million and “inventory well controlled at the same level as the prior corresponding period.”

The half year results report also showed an operating gross profit growth of 17.4 percent to $683.2 million with a margin decrease of 212 basis points to 36.3 percent which includes the “unfavourable impact of higher shrinkage and foreign exchange movements.”

CEO John King attributed this record first half growth to Myer’s flexible offerings and a strong plan for the future. “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.”

Also key to this success is the continuing growth in MYER one and new partnership opportunities, according to the report. MYER one continues to underpin the company’s growth hitting a 73.5 percent tag rate across all transactions, the highest level since public listing in 2009. Active MYER one members increased to 4.1 million in the last 12 months, with new member acquisition up 36.1 percent. Recently announced partnerships and ‘Pay with Points’ programs allow greater access to new customers, new revenue streams and provides greater value for customers and their reward programs, setting up Myer for success as trading conditions potentially tighten. “Our continued investment in MYER one and our data capability is demonstrating strong growth in all metrics, underpinning the trajectory of our business,” stated King. “Partnerships across Commbank, Virgin and American Express continue to deepen the value.”

CEO John King is optimistic this momentum will continue for Myer. In the eight weeks post Christmas, Department store sales are up 16.1 percent over the corresponding period in the prior year.  “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.”

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About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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