This article is from the Australian Property Journal archive
DESPITE strong trading conditions across the FY23 period, Myer (ASX: MYR) ended the financial year with softening sales as buyers became more cautious in the face of rising cost of living concerns.
Myer’s total sales for the FY23 period were up 12.5% to $3,362.9 million with sales in the second half seeing just 0.4% growth.
Reduced growth over the second half of FY23 reflected deteriorating trading conditions over the fourth quarter, where macro-economic conditions such as the cost of living crisis weighed on consumer demand.
Net Profit after tax was at $71.1 million, which was the group’s the highest since FY15. With EBIT up 88% compared to FY19.
Operating gross profit was up 6.9% to $1,224.6 million, with margin down 189 basis points to 36.4%.
“We are pleased with the strength and quality of our full year result, which despite a softer trading outcome in Q4 as a result of current economic conditions, not only delivered our best full year sales result since 2005, but also showed continued profitability and a strong balance sheet providing a solid foundation to deliver our future plans and growth opportunities under our successful Customer First Plan,” said John King, CEO at Myer.
Myer declared a fully franked final dividend of 1.0 cent per share, for total FY23 dividends to 9.0 cents per share.
“This year, we distributed $86 million of dividends to our shareholders, which demonstrates the confidence in the Plan and the Myer business,” added King.
Online sales represented 20.5% of total sales or $690.5 million, a decline of 4.5% cycling mandatory store closures in the first quarter of FY22.
This represents a four-year Compound Annual Growth Rate (CAGR) of 27.4% from FY19 (pre-COVID).
Cost of doing business (CODB) was $824.1 million or 24.5% of total sales, which represents an improvement of 42 basis points compared to the previous year.
Net cash at period end down $66m to $120m from higher dividend payments and investments.
Earlier in the year, Myer stepped away from its Queen Street Mall Brisbane flagship amid a dispute with landlords Vicinity Centres and ISPT over the terms of a new lease, while also threatening to leave its Myer Centre Adelaide.
“The strength of our balance sheet and cash management has seen us continue to invest strategically in our store formats, technology and our merchandise offering, including the progressive rollout of new and expanded brands like the Country Road Group, American Eagle and many more,” said King.