Myer reports further drop in sales

Myer has said in a statement that as indicated at the company’s AGM on November 24, 2017, trading at the start of the all-important second quarter had shown no improvement on the first quarter. Since the AGM, the company added, sales continued to be below expectations and reflect ongoing challenging retail conditions characterised by reduced foot traffic, widespread industry discounting and subdued consumer sentiment. For its first quarter, the company’s total sales were down 2.8 percent and comparable store sales were down 2.1 percent, compared to the previous corresponding period.

Commenting on the trading, Myer Chief Executive Officer Richard Umbers said in a statement: “Trading during the past two weeks has been significantly below our expectations and the year to date run rate, and while there is an additional weekend of pre-Christmas trading this month, we do not know what the sales impact of that will be. There has been continued strong performance in our online business with sales up 62 percent in the first four months despite cycling a particularly strong previous corresponding period in the lead up to Christmas 2016. While this strong growth has not been sufficient to offset the subdued trading in some stores, we take confidence from this performance as indicating that we are investing in the right areas.”

Myer continues to witness difficult trading period

Despite investing heavily in marketing and traffic-driving initiatives, Myer’s total sales to the end of November were down 2.3 percent and down 1.8 percent on a comparable store sales basis. Sales during the first two weeks in December have also weakened further and were down 5 percent on the previous corresponding period.

“While the last two weeks of trading have been disappointing, I am in no doubt that the commitments made at the recent Myer Strategy Day to further focus on omni-channel and productivity are the correct priorities. As I said at the AGM, I am an impatient person and I am driving the executive team to unlock value more quickly. During the next 12 weeks, I will be continuing my incoming Chairman’s review of all aspects of the business including MYER one, omni-channel, merchandise, marketing, customer service, property and a cost review to commence immediately,” added Myer Chairman Garry Hounsell.

Myer expects first half NPAT, pre implementation costs and individually significant items to be materially below the previous corresponding period. Given the recent sales volatility and considering the magnitude of sales expected in the coming weeks, Myer said, it does not have a reasonable basis to provide a specific profit range for the half or full year at this time.

Picture:Facebook/Myer