Myer expects to report profit growth between 15 to 21 percent for FY23

Australian department store Myer reported sales for fiscal year 2023 were up 12.5 percent on FY22 to 3,362.9 million Australian dollars and 12.4 percent on FY19.

FY23 NPAT is expected to reach between 69 million and 73 million Australian dollars, an increase in the range of 15 percent and 21 percent on FY22.

Commenting on the preliminary annual trading update, Myer CEO, John King, said in a release: “Myer’s customer first plan has continued to deliver both positive sales growth and positive profit growth in FY23, despite the prevailing macroeconomic headwinds that have buffeted the retail sector throughout the second half.”

Highlights of Myer’s H2 and FY23 results and outlook

The company’s sales for the second half of FY23 rose 0.4 percent and were up 11.9 percent versus the second half of FY19.

Group’s online sales returned to growth of 3.2 percent during the second half period, while FY23 online sales were down 4.5 percent to 690.5 million Australian dollars reflecting favourable impact of store closures in the first half of FY22. Compared to FY19, online sales increased 163.2 percent.

The company expects net profit after tax (NPAT) for the second half of FY23 to be between 4 million and 8 million Australian dollars despite the prevailing headwinds generated from the macroeconomic environment affecting sales, margin and costs of doing business.

“We continue to tightly manage costs, inventory and cash to ensure we have a strong balance sheet as we begin FY24 where we expect the ongoing uncertainty around the macroeconomic environment to persist,” added King.

Following the company’s recent announcement that John King will retire from his role in 2024, the board has engaged search firm Egon Zehnder for the CEO replacement process.