Myer has reported a 3% decline in total sales for the first half of FY24 to $1.8 billion.
Myer now expects first half net profit after tax (NPAT) to be between $49 million and $53 million, which is down from $65 million reported the same time last year.
The NPAT guidance includes the impact of store closures and inflationary cost pressures.
Myer’s group online sales are expected to be $390.1 million, an increase of 2% on the first half of FY23 and representing 21.3% of total sales.
The group’s comparable sales are up 0.1% on the prior corresponding period.
Myer CEO John King said the sector is navigating a number of economic hurdles.
“Like many retailers, we have had to contend with inflationary pressures and greater promotional cadence, which has had an impact on profits,” King said.
“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.”
The total inventory at Myer is expected to be lower than the same time last year.
Myer anticipates releasing its complete first half results during March 2024, following the completion of financial close procedures, board approval and completion of the half year review by the company’s auditors.
The board is also continuing its search for a new chief executive officer and expects to update the market on progress in due course.