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February, 2024

Myer guidance suggests modest sales growth amid economic challenges

Myer Holdings has released a trading update and guidance on its expected results for the 26-week period ended 27 January 2024 (1H24). The company reported a marginal 0.1% increase in Group Comparable Sales compared to 1H23, reflecting the strength of its improved customer value proposition under the Customer First Plan. However, Total Sales for 1H24 are expected to be down 3.0% on 1H23 to $1,829.1m, but still 13.8% higher than pre-Covid 1H20.

Online sales are expected to reach $390.1m, a 2.0% increase on 1H23, representing 21.3% of Total Sales. Myer anticipates a Net Profit After Tax (NPAT) between $49m and $53m for 1H24, factoring in the adverse impacts of store closures and inflationary cost pressures. The company’s total inventory is expected to be lower than the same time last year, reflecting its ongoing focus on newness and controlling intake to match trading conditions.

John King, CEO of Myer, commented, “To match our best first half sales result on record, on a comparable sales basis, is an encouraging result given the current economic environment. Like many retailers, we have had to contend with inflationary pressures and greater promotional cadence, which has had an impact on profits. 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.”