Myer plunges to 476.2 mn Australian dollars net loss in H1

Myer Holdings Limited for the 26 weeks to 27 January 2018 reported 49 percent surge is online sales but total sales for the period declined 3.6 percent to 1,719.7 million Australian dollars (1,323.4 million dollars), while comparable store sales were down 3 percent. The company recorded a statutory net loss after tax of 476.2 million Australian dollars (366.5 million dollars) due to write-downs worth 538 million Australian dollars (414 million dollars). In light of the challenging retail trading environment, the company’s board has decided not to pay any interim dividend.

Commenting on the results, Myer Executive Chairman, Garry Hounsell said in a statement: “Since becoming executive chairman, I have been driving the management team to trade the business more aggressively. Myer now has one of the largest and fastest growing online businesses in Australia. We are investigating the viability of establishing both online and loyalty as separate business units to give them more prominence as future growth drivers.”

Second quarter sales at Myer were down 4.2 percent to 1,020.6 million Australian dollars (785.5 million dollars), down 3.6 percent on a comparable store basis. This compares to a decline in total sales of 2.8 percent in the first quarter, and a decline of 2.1 percent on a comparable stores basis. The company added that the result was exacerbated by a particularly poor trading period in January.

Sales per square metre on a 12 months rolling basis decreased by 2.6 percent in the first half of 2018, lower than the comparative sales decline reflecting continued progress in reducing the footprint. Earnings per share, pre-implementation costs and individually significant items were 4.9 cents compared to 7.7 cents per share in same period last year. The company said, net profit after tax (NPAT) for the period was 40.1 million Australian dollars (in line with the NPAT range announced on February 9 of between 37 million Australian dollars and 41 million Australian dollars.

Hounsell added that the results for the half-year were unsatisfactory and reflected a number of execution issues including, the failure to respond appropriately to the heightened competitive environment prior to Christmas and failure to manage the execution of strategic initiatives, for example, some elements of the strategy, which targeted a new high value customer were rolled out too quickly and didn’t balance enough attention on Myer’s traditional customer base, adversely impacting profitability.

Picture:Facebook/Myer