Department store chain Myer expects fiscal first-half sales and net profit to decline year over year amid a challenging trading environment.
The company forecasts sales to fall 3 per cent to $1.83 billion, despite online sales increasing 2 per cent to $390.1 million. Online sales account for 21.3 per cent of the retailer’s overall sales.
Myer, however, flagged a marginal increase of 0.1 per cent in comparable sales.
“To match our best first-half sales result on record, on a comparable basis, is an encouraging result given the current economic environment,” said Myer CEO John King.
“Like many retailers, we have had to contend with inflationary pressures and greater promotional cadence, which has an impact on profits.”
Myer estimates net profit during the period to stand between $49 million and $53 million, compared to $65 million last year.
The company said its inventory is also expected to be lower, reflecting the continuing focus on newness and controlling intake to match trading conditions.
“We expect the consumer to remain cautious in the second half of FY24 but believe we remain well-positioned with the strength of our leading loyalty program, our national distribution centre starting to scale and the continued rollout of successful brand extensions and new additions,” said King.