Department store Myer is projecting a full year sales drop of 2.9 per cent to $3.26 billion for FY24, reflecting the closures of two key stores in 2023 - Brisbane City and Frankston, Victoria.
Despite the full-year drop, second-half comparable sales are predicted to be up 0.8 per cent on the same time last year, with full-year comparable sales up 0.4 per cent.
Myer’s net profit is also projected to fall in FY24 compared to last financial year, hitting somewhere between $50 million and $54 million. Myer cited the challenging consumer environment for the fall, alongside inflationary cost pressures, as well as the underperformance of three of Myer’s owned brands Sass & Bide, Marcs and David Lawrence - driven by additional discounting and the weak trading environment.
The underperformance of these brands is expected to represent approximately half of the year-on-year decline in net profit after tax (NPAT).
Myer has also reported a 2 per cent boom in online sales to $704 million, representing 21.6 per cent of total sales.
Myer executive chair Olivia Wirth said the second half sales performance demonstrates resilience in the face of a difficult trading environment.
“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,” Wirth said.
“We are also positioning the business for growth and are well progressed in a comprehensive strategic review of the business. We look forward to discussing the strategic review at an investor presentation in October."
Myer reported that the tentative merging plans with Premier continue to progress.