Myer CEO Bernie Brookes has blamed a double digit slide in profit on investment in ‘repositioning’ the business with store refurbishments and an improved omni-channel offering.
Myer’s net profit after tax (NPAT) for the full year ended July 30 dropped 22.6 per cent to $98.5 million, down from $127.2 million year ago.
Total sales slipped 0.6 per cent to $3.14 billion. However, sales on a comparable store-by-store basis were up 1.2 per cent and sales in Q4 were up 2.1 per cent.
“As expected, our investment in the business during the year adversely affected profitability however we look forward to the benefits beginning to be realised in FY2015,” Brookes said.
The appliance segment recorded strong sales growth, the company said, along with other key categories of cosmetics, women’s footwear, handbags and the Miss Shop.
“It is pleasing that the business was able to maintain total sales despite the disruption arising from four of our top 25 stores being under refurbishment and two store closures, highlighting our ability to successfully execute our strategy.
“It was particularly encouraging to achieve comparable store sales growth of 1.2 per cent for the year and 2.1 per cent in the fourth quarter given the subdued consumer sentiment following the federal budget as well as unseasonably warm weather during the second half,” Brookes said.
Without providing specific figures, Myer reported that its online sales had more than doubled and the average transaction value of online purchases also increased. Its omni-channel strategy included the addition of more ‘inspirational’ online content, the full implementation of dedicated online distribution centre and the roll-out of click & Collect to all stores.
In FY2015 Myer will be rolling out 1,400 iPads to stores which will provide customers access to a significantly expanded product range.
The business said it anticipates the benefits from this year of transition will be realised with stronger numbers in FY2015.
“Myer is positioned to deliver an anticipated improvement in sales in FY2015 benefiting from the recently refurbished stores at Adelaide and Indooroopilly, expansion of our flagship Melbourne City store, the imminent launch of two new stores at Mt Gravatt (October 2014) and Joondalup (Noevember 2014) and the completion of refurbishments at Macquarie (October 2014) and Miranda (2014),” Brookes said.