Myer is expecting a small loss in its first half of the 2024 financial year following 2023’s record breaking results.
Myer has revealed its preliminary first half results in a trading update.
The department store last year achieved record sales of $3.36 billion in FY23, the highest for the company since 2005. NPAT also soared 18.2 percent YoY at $71.1m, 109 percent higher than pre-covid results in 2019, and its highest since 2015. In 1HFY23, total sales growth soared to $ 1.88 million, a growth of 24.2 percent for the half.
Total sales for 1H24 expected to be down 3 percent on 1H23 to $1,829.1m, and 13.8 percent higher than preCovid 1H20.
“To match our best first half sales result on record, on a comparable sales basis, is an encouraging result given the current economic environment,” said CEO John King.
Online sales expected to be $390.1m, an increase of 2 percent on 1H23 and representing 21.3 percent of Total Sales.
Myer currently expects 1H24 NPAT of between $49m and $53m, which includes the “unfavourable” impacts of store closures, and the impact of inflationary cost pressures
Total Group inventory is expected to be lower than the same time last year, reflecting the continuing focus on newness and controlling intake to match trading conditions
“Like many retailers, we have had to contend with inflationary pressures and greater promotional cadence, which has had an impact on profits,” said CEO John King. “Our focus remains on seeking to drive further and sustainable cost efficiencies and inventory management.
“We expect the consumer to remain cautious in the second half of FY24 but believe we remain well positioned with the strength of our leading loyalty program, our national distribution centre starting to scale and the continued roll out of successful brand extensions and new additions.”
Myer expects to release its full first half results in March 2024 following review.