Myer has reported a 2.8 per cent lift in online sales for the first 22 weeks of FY25, deviating from an overall comparable sales slip of 0.8 per cent.
The department store’s total sales were approximately $1.59 billion for the first half, which were affected by the temporary closure of its Werribee store between February 14 and November 29 last year.
Operating gross profit was approximately $560 million, representing a decrease of around $15 million compared to the same time last year, while earnings before interest and tax (EBIT) fell by around $16 million to roughly $48 million.
According to Myer, it’s year-to-date financial performance has been impacted by a number of factors, including challenging macroeconomic conditions as well as increased costs and ramp-up complexity at the new National Distribution Centre in Ravenhall, “which has delayed the realisation of expected benefits.”
“In challenging trading conditions for the retail sector driven by a tough macroeconomic environment, Myer’s year-to-date sales performance has been stable,” executive chair Olivia Wirth said.
“Trading during last year’s key sales events including Black Friday was strong, but consumers remain cautious and focused on value given persistent cost-of-living pressures.
“Despite the challenging trading environment, I am pleased to report that we continue to record solid growth in our market-leading MYER one loyalty program.”
Myer also noted the sales slips at Premier Investments, particularly the five apparel brands under the Just Group which is also projecting a fall in first half revenue. It comes ahead of the final hurdle in a merger deal between Myer and Premier, where the department store is set to acquire Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans in return for shares.
Despite the challenged business, Myer told its shareholders today that it still continues to see significant opportunity in the proposed combination.
“Myer Independent Directors unanimously support the Proposed Combination, intend to vote in favour of the Combination Resolution at the Meeting, and unanimously recommend that Myer Shareholders also vote in favour of the Combination Resolution, subject to the Independent Expert continuing to conclude that the Combination is either fair and reasonable, or not fair, but reasonable to Non-Associated Myer Shareholders,” the company reported in a trading update today.