Myer H1 sales decline by 13.1 percent

Total sales at Myer for the first half period were down 13.1 percent to 1,398 million Australian dollars; reflecting store closures and reduced foot traffic throughout the period, particularly in the large CBD stores Melbourne, Sydney and Brisbane. The company said in a statement that comparable store sales were down 3.1 percent but up 6.3 percent excluding the six CBD stores. Comparable sales in Myer CBD stores were down by 32 percent. The company witnessed 71 percent growth in online sales to 287.6 million Australian dollars, representing 21 percent of total sales.

Commenting on the trading results, Myer’s Chief Executive Officer and Managing Director, John King, said: “The first half result reflects several positive achievements including the continued strength of our online business, now representing 21 percent of total sales, as well as sustained disciplined management of costs, cash and inventory.”

The company added that operating gross profit (OGP) margin declined by 55 basis points to 38.6 percent due in part to lower margin sales in apparel categories early in the first half period. EBITDA for the period declined by 1.7 percent to 214.6 million Australian dollars, while EBIT increased by 2.7 percent to 109 million Australian dollars, EBIT margin increased by 120 basis points to 7.8 percent. The company’s statutory net profit after tax rose 76.3 percent to 43 million Australian dollars.

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