Sales for the full year 2022, profits increase as online revenue reaches a quarter of total sales

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Managing Director John King said execution of the Customer First Plan strategy continued to deliver positive results and all categories saw sales growth over the past year, although more trading days were reported. been lost due to COVID-19 this year.

“The momentum of the second half in terms of sales growth, both in-store and online, profitability and the strengthening of our balance sheet puts us well on the cusp of the new fiscal year,” he said in a statement. .

Net income for the full year, excluding all major items, is expected to be between $55 million and $60 million, an increase of between 86% and 103% when the $22 million in payouts support for JobKeeper are excluded from the previous year when stores were closed.

The South African owners of rival David Jones said that despite the effects of rising inflation and interest rates, strong consumer demand led to a better-than-expected sales rebound in the second half after an early start. difficult year.

David Jones sales fell 2.6% for the year as a whole. Online sales increased by 28.7%, representing nearly 23% of group sales.

Woolworths of SA also owns Country Road Group (which includes the Country Road, Trenery and Politix brands). Sales increased 9% in the second half, pushing full-year sales into positive territory.

Investors Mutual analyst Lucas Goode said Myer’s management was implementing the turnaround strategy, which helped the retailer post its highest second-half profit since 2013.

Mr Goode said: “As bricks and mortar face structural headwinds, Myer has started paying dividends again during the year. Myer will make $1 billion in online sales over the next two years, and they already sell more online than Adore Beauty and The Iconic combined, so it’s a big online business and actually generates a lot more profits.

“Household goods are likely to run out of steam (in 2022), but apparel should be booming.”

Myer’s online revenue in fiscal 2022 is expected to grow 32.5% to 34.4%. It represents about 24% of sales, between 715 and 725 million dollars.

Its balance sheet provides a solid foundation to end the full year with positive net cash of over $155 million, which could be used for a special dividend.

Inventory on hand is nearly 10% higher than the same period last year, primarily due to increased inventory to mitigate global supply chain delays. Mr King said clearance stocks, at 6.2% of department store on-hand stock, continued to be well managed.

Myer expects to release its final 2022 results in September, following a comprehensive audit that will include any significant items or other one-time costs.

Billionaire retailer and major Melbourne shareholder Solomon Lew has long been a thorn in Myer’s side. Mr. Lew was not available to comment.

In February, his Premier Investments bought another $15 million in shares, raising his stake to the 19.9% ​​takeover threshold and giving Mr Lew a say in Myer’s future.

In March, long-suffering Myer shareholders received their first dividend since 2017 — a payout of 1.5¢ per share — indicating the department store was getting back on track.

About five years ago, Mr King launched a turnaround strategy aimed at improving performance, which included closing stores, reducing floor space and introducing new brands.

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