Myer has reported first quarter total sales for the thirteen weeks to October 26, 2013 of $691.1 million, up 0.44 per cent compared to last year.
On a comparable store sales basis, sales were up 0.41 per cent compared to last year.
While the results as slight, some would say it’s better than nothing, given the soft performance of department stores in recent quarters.
Cosmetics, youth, womenswear, and menswear were the strongest performers during the quarter, while geographically, Queensland, ACT, and Victoria showed the most growth.
Online sales more than doubled in the three months, reflecting the significant improvements made to the online store and the supporting infrastructure in recent months.
Myer CEO, Bernie Brookes, said that the Q1 sales result was solid, particularly given the significant impact on sales caused by the refurbishment of three of the business’s top 20 stores.
“We are pleased with this sales result which is in line with our expectations and gives us early encouragement that we are well positioned to make the most of our busiest time of year during the Christmas and stocktake trading period,” said Brookes.
“Whilst trading prior to the federal election was subdued, the trend improved modestly during the quarter and has been less volatile than in the months prior to the election, but continues to be patchy.
“This result demonstrates the progress we are making in strengthening our competitive position through the execution of our five point plan,” he said.
Stores at Adelaide City, Indooroopilly, and Miranda underwent refurbishments during the quarter.
“While we anticipate sales disruption from these refurbishments to continue during FY2014, we are committed to minimising disruption and ensuring that the instore experience is of a consistently high standard across all of our stores.”
Store network productivity was improved with the space optimisation of Myer’s Dandenong store, which involved a significant reorganisation of floor space and redesign of floor plans to maximise space for key high margin categories including women’s and men’s fashion.
Store optimisation in four additional stores is on track to be completed by March 2014.
