Myer profits more than double in best result since 2014

Department store Myer is upbeat about the trading environment after posting a 101.4 per cent jump in net profit for the first half, its strongest result since 2014.

Chief executive John King said on Thursday morning that while the company is cautious about the broader economic environment as cost-of-living pressures increase, the retailer has seen sales grow by 16 per cent in the eight weeks after Christmas.

“We are pleased with the momentum we are generating […] and have a strong pipeline of initiatives to come, which will ensure we are well-placed for the future,” King said in a statement to the ASX.

Myer booked a net profit of $65 million for the six months to the end of January, up from $32.7 million the year before. Sales rose 24.2 per cent to a record $1.8 billion. The bumper result had been flagged last month.

The company rewarded investors with a special dividend of 4 cents per share for the half, on top of an interim dividend of 4 cents – bringing the total payout to 8 cents.

King said the payment shows the confidence that Myer has in its momentum as it faces the rest of the 2023 year.

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A bounce-back in the group’s city stores drove the result, with sales increasing by 53.7 per cent at CBD sites compared with the same time last year, when COVID lockdowns and people working-from-home affected trading. When the impact of COVID restrictions are excluded, sales were up by 20 per cent.

Myer’s online sales declined by 9.8 per cent for the half, but still make up $382.3 million of Myer’s sales revenue, with online transactions up by 31.5 per cent compared with three years ago.