Myer who recently appointed a new CEO has reported that total sales for 2023/2024  financial year are predicted to be $3.27bn down 2.9% and that profits were down significantly, during the last financial year.

Executive chairman Olivia Wirth took over the running of the retailer last month, is facing tough trading conditions with JB HI Fi tipped to report next week in a market that Worth claims is “challenging”.

One of the big issues appears to be inflationary pressures and weak trading with discounting cutting profits by almost a third.

Myer said in its trading update that it expects a full-year net profit of $50m to $54m, down from $71.1m in 2023.

Former Qantas executive Olivia Wirth was appointed Myer executive chairwoman last month

Former Qantas executive Olivia Wirth was appointed Myer executive chairwoman

The department store owner said in terms of expected sales for 2024, second half same store sales rose 0.8 per cent to the second half of 2023 with full-year same store sales up only 0.4 per cent.

Total sales in 2024 are expected to be $3.27bn, down 2.9 per cent.

Currently the board is exploring a tie-up with Solomon Lew’s Premier Investments that would see Myer buy Premier’s apparel arm which owns brands Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti.

Currently the deal has not been approved and due to current market conditions there are still risks associated with the deal claim observers.

Ms Wirth said the second half sales performance for Myer demonstrated resilience in the face of this difficult trading environment, coupled most notably with the closure of its Brisbane CBD store and the underperformance of the Sass & Bide, Marcs and David Lawrence brands.

“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,” she said.

“We are also positioning the business for growth and are well progressed in a comprehensive strategic review of the business. We look forward to discussing the strategic review at an investor presentation in October.”

In Summary:

The retailer sees net profit of between $50 million and $54 million in FY24, down from $71.1 million in the prior year.

Total sales in FY24 is expected to be $3.26 billion, down 2.9 per cent on FY23, contributing was the closure of the Myer Brisbane City and Frankston stores.

Total group inventory is expected to be consistent year-on-year, reflecting “tight inventory management and increased focus on newness”, the company said.