Myer shares jump as sales improve amid margin pressure
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More news: Myer’s share price is trading higher after the retail group reported mixed trading results during the second-half of FY25 to date.
The numbers: Myer’s share price were up 4.32% to $0.77 at 11:06am AEST after an initial 9.46% jump five minutes after market open.
Total sales were up 1.9% year on year but down 3.9% at the recently acquired Apparel Brands business .
Myer flags margin squeeze, sales dip at new apparel unit
The news: Department store chain Myer has reported mixed second-half trading to date amid volatile trading conditions.
The numbers: Total sales for the 16 weeks in the second half to date were up 1.9% from a year ago to $837.2 million, while comparable sales were up 1.5%.
However, total sales at the Apparel Brands business that it recently acquired from Premier Investments were down 3.9% to $211.2 million, while comparable sales were down 3.7% from a year ago.
The context: The retailer said its second half financial performance has been affected by margin pressure from heightened promotional activity, increased store wages and occupancy outgoing costs, investment in additional leadership capabilities and unfavourable foreign exchange movements.
Myer said complexities at its new national distribution centre in Victoria had continued, and the company has come up with an interim solution following a comprehensive review. It has appointed Toll to handle third-party logistics operations and improve NDC output, which will reduce strain on its store network.
“Consumers remain cautious and focused on value in response to cost-of-living pressures and the current macroeconomic headwinds and uncertainty. This has resulted in volatile trading conditions with widespread promotional activity across the retail sector,” Myer CEO Olivia Wirth said.
The source: ASX
