Myer posts a solid result in a difficult market

September 13, 2012 - Australia

Myer Holdings Limited releases full year results ending 28 July 2012. 

Financial highlights

Sales
• FY2012 sales down 1.3% to $3,119 million, down 2.0% on a comparable store sales basis
• 2H2012 sales down 0.7% to $1,415 million, down 0.8% on a comparable store sales basis
• Q4 sales down 0.3% to $766 million, up 0.3% on a comparable store sales basis
• Excluding rationalised categories, total Q4 sales up 0.2%, up 0.6% on a comparable store sales basis
 
Operating gross profit
• FY2012 operating gross profit up 1.3% to $1,288.4 million. FY2012 operating gross profit margin up 105 basis points (bps) to 41.31%
• 2H2012 operating gross profit up 3.7% to $590.1 million. 2H2012 operating gross profit margin up 179 bps to 41.7%
 
Earnings
• FY2012 earnings before interest, tax, depreciation, amortisation (EBITDA) down 7.7% to $311.8 million
• 2H2012 EBITDA down 4.3% to $128.9 million
• FY2012 earnings before interest and tax (EBIT) down 11.2% to $230.0 million
• 2H2012 EBIT down 4.0% to $87.1 million
• FY2012 Net profit after tax (NPAT) (after non-controlling interest) down 14.3% to $139.3 million
• 2H2012 NPAT (after non-controlling interest) down 3.3% to $52.0 million
• Final dividend of 9 cents per share, fully franked, to be paid on 14 November 2012
(Record Date is 28 September 2012), taking the full year dividend to 19 cents per share
 
Myer Chief Executive Officer, Bernie Brookes, said the business had delivered a solid result in a challenging retail environment with subdued consumer confidence, finishing the year with three months of positive comparable store sales growth.
 
“The highlight of this year’s result is the strong gross profit performance reflecting a number of key achievements. We delivered on the objectives of growing our Myer Exclusive Brands to 19 percent of sales, further reducing our shrinkage and markdowns, and improving our sourcing,” said Mr Brookes.
 
“The progress we made in implementing our five-point strategic plan clearly supported the profitability of the business and helped to offset ongoing cost headwinds. “I am encouraged by the further positive feedback from customers and team members as we focus on delivering an inspiring customer solution, with improved customer service and an enhanced merchandise range.
 
“With the support of our Asian sourcing offices, we have continued to develop our stable of 57 Myer Exclusive Brands with our established team of designers, product developers and planners. This represents a key strategic advantage.
 
 

“We have delivered on a number of initiatives to improve both our loyalty program and omnichannel offer to reflect changing customer needs in this environment of rapidly evolving technology,” he said.

In view of Myer’s continued strong cash generation and stable balance sheet, the Board has determined a final dividend of 9 cents per share taking the full year dividend to 19 cents per share fully franked (FY2011: 22.5 cents).
 
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