Myer profits soar as shoppers rush back to department stores
Myer has posted its highest second-half profit in almost a decade after shoppers rushed back to the shops following lockdowns.
Myer in Rundle Mall. Photo: Tony Lewis/InDaily
The department store booked $49 million in after tax profits for the year ended in June on Thursday, 5.7 per cent higher than last year.
Myer chief executive John King said his turnaround plan for the retailer, which has been struggling for years, is starting to pay off.
“Despite the broader economic uncertainty, we are well placed with the right value based proposition of affordable and aspirational brands,” Mr King said in a statement sent to investors on Thursday.
Myer – which took $144 million worth of JobKeeper during COVID – now says it will pay investors a dividend worth $20.5 million, on top of the $12.3 million interim payout they were handed back in May.
The company confirmed last November that it had not paid back any of the wage subsidies it received from taxpayers.
King said the good times were continuing for Myer despite inflation headwinds weighing on consumers. Sales growth in the first six weeks of the 2022-23 financial year were at their highest since 2006.
Myer has sales growth of 12.5 per cent for the year just past, taking revenue to almost $3 billion, while online sales grew by 34 per cent.
“Our online business has been a core foundation of our business growth and has importantly outperformed the market,” King said.
The retailer’s improving performance contrasts that of its rival David Jones, whose after-tax profits fell in the 2021-22 financial year.
However, DJs has also reported a rebound in sales lately as shoppers head back to department stores following two years of lockdowns.
