Interest rate hikes, inflation, and dampened household spending won’t stop Myer’s recent renaissance, according to CEO John King – and its biggest shareholder is reaping the rewards.

Yesterday, the department store posted a 101.4 per cent jump in net profit, and a 24.2 per cent lift in sales.

King also announced an interim dividend of 4c per share, compared to just 1.5c last year, plus a special dividend of 4c per share.

Shares closed the day 19 per cent higher, and its biggest shareholder, Solomon Lew’s Premier Investments, saw its 25.79 per cent stake hit paper profits, for the first time since he starting buying into Myer in 2017.

According to AFR, Lew (pictured below) has invested an estimated $152.5 million in Myer shares over the past five years, which are now worth $239.3 million – putting him approximately $86.8 million in front.

On May 11, when the dividend is paid out, Lew will receive $16.9 million.

King is confidence that the 16.1 per cent sales lift Myer saw over January and February will continue.

“We are cautious about the pressures that the consumer will come under, particularly those going on to new fixed mortgage rates, but we are confident that we have enough in the pipeline that will help mitigate any kind of economic downturn,” King told The Australian.

“We think that if we continue to give people reasons to come and shop with us they will come and shop with us.”

King also credits the Myer One loyalty program for driving sales. He says three-quarters of sales are by Myer One members.

“The savvy customer realises that loyalty programs are another revenue stream, another currency stream,” he said.

“So those points are real reasons to go and shop. But also, we’ve refurbished stores, we have redone a lot of stores. So what we’re able to do is give people what they want, whether it’s digital or whether it’s physical.

“We have given them reasons to go and shop with us.”