Myer’s profit shock

The Cairns Post - - NEWS - SI­MONE ZIAZIARIS

Myer boss Richard Um­bers is dis­ap­pointed by the de­part­ment store’s 80 per cent drop in full-year profit but is com­mit­ted to his turn­around strat­egy.

MYER boss Richard Um­bers is dis­ap­pointed by the de­part­ment store’s 80 per cent drop in full-year profit but is com­mit­ted to his turn­around strat­egy, say­ing the re­sult has “sta­bilised” the busi­ness even as re­tail con­di­tions re­main tough.

Myer is two years into a five-year, $600 mil­lion turn­around plan based on giv­ing more space to pop­u­lar brands, cut­ting back pri­vate la­bels and clos­ing stores. Mr Um­bers, de­liv­er­ing Myer’s full-year re­sults yes­ter­day, said while the down 2.67 per cent to $3.2b

Fully franked fi­nal div­i­dend of two cents, down from 3 cents

Full-year pay­out of five cents a share, un­changed some cir­cles is still quite cred­i­ble,” Mr Um­bers said.

“The ex­e­cu­tion of New Myer is why we have been able to sta­bilise what has been a very dra­matic de­cline.”

The re­tailer made just $11.94 mil­lion in statu­tory net profit for the 52 weeks to July 29, down 80.3 per cent on the pre­vi­ous 53-week year. To­tal sales fell 2.67 per cent to $3.2 bil­lion and were im­pacted by the ear­lier clo­sure of three stores, Brook­side in Bris­bane and Or­ange and Wol­lon­gong in NSW, and write­downs on the value of fash­ion brands Top Shop and sass & bide.

Myer an­nounced it will close a fur­ther three stores – Colon­nades in South Aus­tralia, Bel­con­nen in the ACT, and Hornsby in Syd­ney’s north – in what it said will be an­other chal­leng­ing year ahead.

Mr Um­bers said the stores were un­der­per­form­ing and their lease agree­ments were due to ex­pire in 2019 or 2020.

“If you look around the globe there is no ques­tion that (de­part­ment stores) op­er­ate in a chal­leng­ing en­vi­ron­ment,” he said. He added the first six weeks of FY2018 were be­low ex­pec­ta­tions and re­flected a “sub­dued start to the year”.

Pic­ture: AARON FRAN­CIS

HIGH HOPES: Myer boss Richard Um­bers said, while the “New Myer” strat­egy hasn’t yet de­liv­ered the sales growth an­tic­i­pated, it is show­ing prom­ise.

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