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Myer Cull Of CE + Hi Fi Brands Pays Off As Sales Soar

Myer Cull Of CE + Hi Fi Brands Pays Off As Sales Soar

The Melbourne based retailer saw comparable store sales almost 4 per cent higher in the first quarter while overall revenue rose 3.4 per cent to $714.8 million in the three months to October 24, supporting the company’s full-year profit guidance of between $64 million and $72 million.

Culling older, underperforming brands, Myer has added 300 new brands since July the Company Chairman Paul McClintock said. 

Speaking to shareholders at the retailer’s annual general meeting in Melbourne, Myer chair Paul McClintock evoked Dickens to characterise the past 12 months: “It was the best of times, it was the worst of times.”

And he urged them to visit a Myer store and experience the changes that had already taken place as Myer pushes ahead with its $600 million transformation plan.

“If you have not visited a Myer store recently, I urge you to do so,” Mr McClintock said.

“I think you will be surprised just how much has changed in a very short time, but of course we have only just begun.”

The sales beat analyst growth expectations of about 1 per cent for the quarter.

Deutsche Bank analyst Michael Simotas had expected like-for-like sales growth of 1 per cent, and some of his peers suggested Myer’s sales for the quarter would have been hurt by discounting at rival David Jones.