Myer shares slide after drop in profit, dividend
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More news: Shares in Myer dived more than 10% to 78 cents each in early trading after the department store chain posted a 26% drop in full-year profit amid a challenging consumer and trading environment and halved its final dividend 0.5 cents a share.
The group has confirmed it will cease the sale of underperforming brands Sass & Bide, Marcs and David Lawrence. it is also continuing talks for a proposed takeover of retailer Premier Investments apparel business.
Myer FY profit slumps as it continues talks to acquire Premier brands
The news: Department store chain Myer has posted a drop in full-year profit and sales amid a challenging consumer and trading environment.
The numbers: The retailer reported full-year net profit of $52.6 million, down 26% from a year ago and within its guidance range outlined last month. Full-year sales were down 2.9% to $3.27 billion, while comparable sales were up 0.4%.
It will pay a final dividend of 0.5 cents a share, down from 1.0 cent a share a year ago.
The context: Myer attributed its lower profit and sales to a challenging trading environment, inflationary costs and the impact of store closures.
The group said a broad range strategic review is continuing, but it has decided to cease the sale of its underperforming brands Sass & Bide, Marcs and David Lawrence.
Myer said it is continuing talks for a proposed takeover of retailer Premier Investments apparel business, including the Just Jeans, Jay Jays and Portmans brands.
The retailer said sales were up 0.2%from a year ago in the first seven weeks of fiscal 2025.
What they said: “Despite the tougher trading conditions, work undertaken by the Myer team in recent years has helped stabilise the business and established a foundation for future growth," Myer CEO Olivia Wirth said.
"With a highly engaged customer base, a leading loyalty program, positive comparable department store sales growth and high levels of trust in the Myer brand, there are significant opportunities for growth,"
The source: ASX announcement
