Myer sales creep up 2 per cent

Myer Holdings Limited has just released its sales figures for the first half of FY10 to 23 January 2010. The retailer recorded sales revenue of $1,797 million, which is up 2 per cent compared to the corresponding period last year.

On a like-for-like basis sales for the first half grew by 1.2 per cent and EBIT is expected to increase by more than 10 per cent over the corresponding period last year.

Total sales revenue for the second quarter of FY10 were flat and followed a 5.2 per cent increase in the first half. Like-for-like sales were strong in November 2009 and January 2010, but were negative in December.

Bernie Brookes, chief executive of Myer, commented on the results.

“Against a backdrop of unprecedented early and deep discounting in the retail sector in the run up to Christmas, we now expect to achieve growth in EBIT in excess of 10 per cent for the first half, and a continuing improvement in EBIT to sales margin. This reflects a continued disciplined approach to running the business – an ongoing focus on cost control, and rigorous inventory management,” he said.

“While sales in the December month were disappointing, the business performed very strongly in January and the Stocktake Sale was a great success.”

Brookes also discussed the Group’s successful investment in new stores and refurbishments.

“We were particularly pleased with the sales uplift resulting from the investment in store refurbishments and visual merchandising program. Sydney, Castle Hill, Blacktown and Doncaster delivered standout performances. We are about to commence work on our Eastland, Marion and Canberra stores,” he said.

“Our new store opening and refurbishment program, including the rebuild of Myer Melbourne and the development of new full size stores in Top Ryde in NSW and Robina in QLD are on track and progressing well. Following a solid performance in the first half, we remain confident of delivering EBIT of $261 million for the full year.”

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