Challenging trading conditions and store closures hit Myer's profit

Myer Holdings Limited expects FY24 sales to be 3,266 million Australian dollars, down 2.9 percent, reflecting the impact of Myer Brisbane City and Frankston store closures.

The company expects NPAT of between 50 million Australian dollars and 54 million Australian dollars reflecting the challenging consumer and trading environment; impact of store closures; inflationary cost pressures; and underperformance of three Myer specialty brands - Sass & Bide, Marcs and David Lawrence.

Commenting on the preliminary trading update, Myer executive chair, Olivia Wirth, said in a statement: “The second half sales performance demonstrates resilience in the face of a difficult trading environment for Myer and the wider retail sector, coupled most notably with the closure of our Brisbane CBD store and the underperformance of the Sass & Bide, Marcs and David Lawrence brands.”

Myers’s comparable sales for the year under review increased 0.4 percent, while online sales of 704 million Australian dollars, were up 2 percent versus FY23. Comparable sales for the second half of FY24 were up 0.8 percent.

The company said that previously announced strategic review and work to explore a potential combination with Premier Investments’ Apparel Brands continues to progress.

“In the current challenging trading conditions, we are acutely focused on optimising operational performance including tightly managing costs, inventory, and margins and fully leveraging our Myer one loyalty program. We look forward to discussing the strategic review at an investor presentation in October," added Wirth.