- Prachi Singh |
For the 52 weeks to July 25, 2020, total sales at Myer were down 15.8 percent to 2,519.4 million Australian dollars (1,831 million dollars), which the company said, reflected widespread store closures. The company added that comparable store sales for the year were down 3.3 percent, while group’s online sales rose 61.1 percent to 422.5 million Australian dollars (307 million dollars). The company suffered a statutory loss of 172.4 million Australian dollars (125.3 million dollars) against the net profit of 24.5 million Australian dollars reported in the previous corresponding year.
Commenting on the company’s annual results, Myer’s Chief Executive Officer and Managing Director, John King, said in a statement: “The decision taken in March 2020 to temporarily close all 60 stores and stand down approximately 10,000 team members was one of the toughest decisions Myer has faced in its 120 years of operation. All stores were closed for the majority of April and May. For the majority of the second half, there was substantially reduced traffic to physical stores, particularly to those located in CBD locations. Myer’s CBD stores represent some of its largest stores with high associated rents, and staffing requirements and therefore the impact on profit as a result of the reduced revenues was exaggerated.”
The company further said that operating gross profit (OGP) margin decreased by 85 basis points to 38 percent, while net loss after tax was 11.3 million Australian dollars (8.2 million dollars) and EBITDA was down 41.6 percent to 93.5 million Australian dollars.
According to a report by Sydney Morning Herald, billionaire retailer Solomon Lew, who owns around 11 percent of Myer and is its majority shareholder via his company Premier Investments has called for its directors’ resignation after the disastrous results posted by the company.