The Myer Holdings Ltd (ASX: MYR) share price is higher after reporting its FY24 first-half result.
Myer is a department store retailer that is aimed at more affluent shoppers.
FY24 first-half result highlights
Here are some of the highlights from the six months of the company’s HY24 result.
- Total sales down 3% to $1.83 billion
- EBIT (EBIT explained) sank 14.7% to $119.1 million
- Underlying net profit after tax (NPAT) dropped 19.9% to $52 million
- Statutory NPAT fell 22.4% to $50.5 million
- Ordinary dividend per share down 25% to $0.03
Myer reported that group comparable sales increased by 0.1%, despite the difficult trading conditions, and last year was a record sales performance. Online sales increased 2% to $390.1 million.
The ASX retailer saw its cost of doing business (CODB) rise $6.9 million to $449.4 million, but was broadly flat if the delivery income classification was excluded, which showed Myer’s focus on mitigating cost increases, including the favourable impact of store closures.
The business has been working on implementing new software to help with its operations.
CBD stores were the strongest in-store format, with comparable sales increasing 0.8%.
MYER one continues to deliver “record results”, with the tag rate increasing to 76.2%. The company said 374,000 new members joined during the FY24 first half, while active members increased to 4.3 million.
It was also announced that Olivia Wirth, who was previously the boss of the Qantas Airways Limited (ASX: QAN) loyalty division, will become the executive chair.
Outlook for the Myer share price
The company said it’s well-positioned for the current environment and to maximise future opportunities.
The national distribution centre phased scale-up starts in March 2024, with the new Queensland distribution centre starting at the end of FY24.
Myer said improved inventory availability at the end of the FY24 first half is driving the ‘newness’ which customers are responding to.
The Country Road Group rollout continues through to FY25.
Myer continues to invest in technology and store infrastructure for the foundation of future growth.
It also said it has appointed advisors to commence a strategic review of the business, which includes assessing external interest in purchasing the sass & bide, Marcs and David Lawrence brands.
In the first six weeks of the second half of FY24, department store comparable sales were up 4.9% year over year.
Final thoughts on the Myer share price
Myer, just like a lot of retailers, seems to be doing better than expected amid the higher cost of living.
The Myer share price has soared over the last few months. I’m not sure if it’s a buy or not – can department stores keep performing over the long-term? At the moment it seems so.
It’s not priced expensively, but I’d rather buy a retailer like this when there’s fear about retail spending. There are other ASX growth shares I’d rather buy.
