Myer shares drop despite posting profit jump in the half year
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More news: Shares in Myer fell in afternoon trade despite the company reporting a 32.8% increase in interim statutory net profit, driven by strong performance in its recently acquired Apparel Brands portfolio.
Shares fell 2.59% to 28 cents at 2:36pm AEDT.
Myer profit rises 32.8% as apparel acquisition lifted sales
The news: Myer reported a 32.8% year-on-year increase in statutory net profit after tax to $40.3 million for the six months to 24 January, driven by the inclusion its recently acquired Apparel Brands portfolio.
The numbers: Total sales rose 24.5% to $2.29 billion, while comparable sales increased 2.2%.
Myer said the stronger headline growth reflected the inclusion of Apparel Brands — which includes fashion labels Portmans, Just Jeans, Dotti, Jacqui E and Jay Jays — which the company acquired from Premier Investments last year.
Operating gross profit came in at $886 million, a 35.1% increase from the year prior.
Underlying earnings before interest and tax rose 10.5% to $112.8 million, with a net cash position of $287 million.
The company declared a fully franked interim dividend of $1.5 per share, representing a payout ratio of 50.1%.
The context: Myer said the result was supported by the inclusion of Apparel Brands, with growth across womenswear, home, concessions as well as Just Jeans.
Executive chair Olivia Wirth said record Black Friday sales and strong trading through December and January drove revenue growth, highlighting the resilience of the business and the strength of its omnichannel strategy. She also pointed to the relaunch of Myer One loyalty program, which has 5.1 million active users, as a key contributor to sales growth.
What they said: “Given the current volatility in the wider macroeconomic environment and the ongoing pressures on discretionary spending, we are more focused than ever on delivering value for our customers,” Wirth said.
“That’s why we are continuing to deliver the right products and brands for the right value and price, focusing on managing our costs and accelerating the momentum of the transformation of the business,” she added.
The source: ASX
