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Myer Full-Year Profit Doubles Amid Ongoing Transformation

Myer Full-Year Profit Doubles Amid Ongoing Transformation

Myer’s 2016 full-year profit has more than doubled year-on-year as the retailer continues its “New Myer” strategy.

Upon release of the results today, Myer chief executive officer and managing director Richard Umbers stated that a year into its five-year transformation, Myer has “made pleasing progress”, delivering “a net profit result in line with guidance”.

Myer’s sales were up 2.9 per cent to $3.29 billion, up 3 per cent on a comparable store basis, while its statutory net profit after tax of $60.5 million (after implementation costs associated with New Myer of $8.8 million post-tax) was up 103 per cent.

Myer’s net profit after tax (pre-implementation costs) of $69.3 million was down 10.6 per cent.

“There is no doubt that as a result of our strategy, Myer is a measurably stronger business today than it was a year ago,” Umbers commented.

“Our early progress shows Myer in a new light, where the focus on customers, brands, service, efficiency and productivity is evident in our results.”

Umbers stated that Myer still has “a long way to go”, with it, however, “moving in the right direction”.

“In the first 12 months we have made a number of critical investments to build a solid foundation from which we will continue to execute the strategy,” he commented.

“Customers are also responding positively to New Myer’s digital strategy, with omni-channel sales increasing by 74 per cent and profit growing at a faster rate than sales.”

Myer has advised that it will exit its Logan store in the 2018 financial year, and will not proceed with a planned store in Darwin, in addition to previously announced store exits at Brookside, Orange and Wollongong in the 2017 financial year, and the decision to no longer proceed with planned stores at Coomera and Tuggerah.

Myer has also advised of its decision to hand back space at stores in Cairns, Blacktown and Castle Hill in the 2017 financial year, which it states “will further drive productivity improvements”.

“Our commitment to improving productivity has led to a reduction in operating costs, and we remain focused on re-shaping our store footprint, and investing in stores that align with our core customers,” Umbers stated.

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