Myer has seen first quarter sales in FY17 rise 0.6 per cent to $719.2 million, in an indication that the department store’s new strategy is gathering momentum.
The department store chain’s comparable store sales, which strips out new store openings and other one-off events, lifted 1.6 per cent, to be the fifth consecutive quarter to post comparable sales.
Comparable store sales at Myer’s flagship and premium stores rose 2.8 per cent.
“After 12 months of significant change across the business, Myer reported an underlying net profit after tax of $69.3 million dollars which was in line with expectations and the guidance we gave as part of our capital raising, with statutory NPAT of $60.5 million,” said Paul McClintock, Myer chairman at the company’s AGM this morning.
“Of course the ultimate test of new Myer is whether it delivers the financial results over the next four years upon which our new investment is based.
“Some of those results will take time to achieve and will be seen more clearly at the back end of the program, but the board continues to hold the view that subject to no significant deterioration in consumer sentiment, 2017 will see EBITDA growth ahead of sales growth and a return to NPAT growth both before and after implementation costs.”
Myer is targeting average sales growth greater than three per cent between 2016-2020, also aiming for a 20 per cent by 2020 for sales per square metre.
The department store’s digital strategy appears to be paying off, after the company reported 74 per cent growth in omnichannel sales with profit growing even faster than sales due attributed to customer experience improvements driving increased conversion – with sales via 2500 iPads in store increasing by 117 per cent.
Click & Collect now represents 9 per cent of omnichannel sales for the company.
Myer also confirmed plans to exit its stores at Brookside, Orange and Wollongong in FY2017 and Logan in FY2018 – and is not proceeding with Coomera, Tuggerah, Darwin stores.
Shares in Myer were seven cents, or 6.73 per cent, higher at $1.11 at 1010 AEDT.
Meanwhile Myer has today announced the appointment of JoAnne Stephenson to its board as a non-executive director. Stephenson has over 25 years of corporate experience across a range of industries.
“JoAnne’s appointment to the board continues a process of orderly board renewal to ensure the new Myer transformation is supported by directors with the necessary skills and experience to guide a complex and comprehensive change agenda,” said McClintock.
“JoAnne is a valuable addition to the Myer board, particularly in audit and risk where she will provide support to the oversight of the new Myer transformation.”
Stephenson is currently a non-executive director and chairman of the audit and risk committees of Challenger Ltd and Asaleo Care. She is also a non-executive director of Japara Healthcare and chairman of both the Victorian Major Transport Infrastructure Board and the Melbourne Chamber Orchestra.
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