Myer lifts full-year profit, flags slowing sales

The news: Department store chain Myer has lifted its full-year net profit in line with forecasts but flagged slowing sales in the new fiscal year.

The numbers: The retailer reported an 18.2% increase in full-year net profit to $71.1 million, in line with a trading update last month. Sales for the 52 weeks to July 29 were up 12.5% to $3.36 despite a deterioration in trading conditions in the fourth quarter. It declared a final dividend of 1 cent per share, down from 2.5 cents a year ago.

The context: Outgoing CEO John King flagged that department store comparable sales are down 1.9% in the first six weeks of the new year but said Myer is well positioned to navigate economic uncertainty, given its strong loyalty scheme and expanded brand relationships. “Like all retailers, we continue to remain cautious about the macroeconomic environment, however, we are pleased with our strong results at the Half and the Full Year,” he said.