Myer sales soar, highest since 2005

Myer has today released its FY23 results. Sales are the best in nearly 20 years, but CEO John King warns that conditions are slowing. 

Sales totalled $3.36b, the highest for the company since 2005. NPAT is up 18.2 percent YoY at $71.1m, 109 percent higher than pre-covid results in 2019, and its highest since 2015. 

While conditions softened in the second half and have continued to dwindle into FY24, Myer says it is well positioned to navigate economic uncertainty with a pipeline to drive future value creation. “Our multi-channel offer remains a key competitive advantage, particularly against pureplay retailers which is something they simply cannot offer their customers,” said CEO and MD John King. “The synergies across the digital and physical environments are clearly evident, with our CBD locations delivering stronger results and online returning to growth in 2H23.”

He identified the key strengths of the business as its merchandise offer, multichannel capability, and leading loyalty program, all unique strengths to provide customer value and protect profitability.

Myer’s multichannel approach is cited as its main growth driver for the year. Its ecommerce arm has delivered 20.5 percent of total sales, with online bringing in $691m over the period. The MYER one loyalty program has continued to grow 21 percent, with active members increasing to 4.2 million, in a record year for engagement.

John King said he was pleased with the strength and the quality of the results. “Despite a softer trading outcome in Q4 as a result of current economic conditions, not only delivered our best full year sales result since 2005, but also showed continued profitability and a strong balance sheet providing a solid foundation to deliver our future plans and growth opportunities under our successful Customer First Plan. 

“Our multi-channel offer is a key strength of these results as we capitalised on customers returning to stores after closures in the prior year, underpinned by our leading customer loyalty proposition in MYER one. Our online offer is a scale business that returned to growth in the second half and has continued to increase market share throughout FY23. 

 “The strength of our balance sheet and cash management has seen us continue to invest strategically in our store formats, technology and our merchandise offering, including the progressive rollout of new and expanded brands like the Country Road Group, American Eagle and many more.”

In management news, following CEO and Managing Director John King’s announcement in June that he would be stepping down in the second half of calendar year 2024, CFO Nigel Chadwick will be retiring early next year. Deputy CFO Matt Jackman will take over the role in February.