Myer shares drop on weak full-year guidance
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The news: Department store chain Myer has flagged a drop in full-year profit and flat sales amid a challenging consumer and trading environment, sending its shares lower.
The numbers: The retailer expects full-year net profit between $50 million and $54 million, down from $71.1 million in FY23, with underperformance from specialty fashion brands Sass & Bide, Marcs, and David Lawrence accounting for half of the decline. It expects full-year sales to be down 2.9% to $3.27 billion, with comparable sales to be up 0.4%.
Myer shares were down 7% to 78 cents each on the ASX.
The context: The group attributed its lower profit and sales to a challenging trading environment, inflationary costs and the impact of store closures. It plans to slim down the store footprint further amid weaker-than-expected performance by its wholly owned fashion brands Sass & Bide, Marcs and David Lawrence.
Myer said it is continuing to work on a proposed takeover of retailer Premier Investments apparel business, including the Just Jeans, Jay Jays and Portmans brands.
What they said: Myer CEO Olivia Wirth said: “In the current challenging trading conditions, we are acutely focused on optimising operational performance including tightly managing costs, inventory and margins and fully leveraging our Myer One loyalty program".
The source: ASX announcement
