Myer has missed nearly every financial target set out when Umbers embarked on a $600 million turnaround strategy.
Myer has announced its Westfield Belconnen store will close in the wake of sluggish sales and profits across the country.
Sept 14 (Reuters) – Australia‘s biggest department store operator, Myer Holdings Ltd, said on Thursday underlying annual net profit fell for a seventh straight year as intense competition and soft retail spending took a toll. Today Myer also announced that it would not be renewing leases at Colonnades, Belconnen and Hornsby.
The result does not include one-off items such as the A$6.8 million cost of writing off Myer’s stake in the Australian franchisee of British retailer Topshop. The result beat consensus forecasts and investors marked its shares up 4.8 per cent in early trade.
Myer’s margins improved 54 basis points to 31.85 per cent, which was higher than Citi’s forecast for gross margins to fall 41 basis points to 38.3 per cent.
Sales in the first six weeks of 2017-18 were “below expectations” and Myer said it expected “continuing changes to both consumer behaviour and the broader competitive environment” in the year ahead. “Since the launch of New Myer in September 2015, we have closed or announced the closure of 74,670square metres of store space overall”, Myer chief executive and managing director Richard Umbers said.
Underlying Net profit down 1,9pct to $67.9m * Statutory net profit down 80.3pct to $11.94m * Total sales down 2.67 per cent to $3.2b * Fully franked final dividend of two cps, down 1 cps, taking the full-year payout to 5 cps, unchanged.
The retailer said it sales will continue to be negatively impacted by new entrants to the market, existing competitors, changes to consumer demographics and increased online competition.
Retail conditions are more challenging than they have been in decades and there is not any light at the end of the tunnel, with Myer confirming sales in the first six weeks of the year had been disappointing.
You have left for this month.