Due to significant costs.
Myer’s profit has been hurt by restructuring costs, store exit costs and an impairment of goodwill totalling $541 million. This resulted in a loss of $486 million for the 52 weeks ended 28 July 2018.
Net profit after tax (NPAT) before implementation costs and individually significant items was $32.5 million, down 52.2% year-on-year. Total online sales were $239.4 million, including $30.8 million via in-store iPads.
“These results are obviously disappointing and shareholders deserve better,” Myer CEO, John King (pictured) said.
“Since joining Myer in June 2018, I have completed a thorough review of the business, including visiting 44 stores and I have met with customers, team members, suppliers, brand partners and landlords.
“Our plan is to put our customers first in everything we do.”
(Photo Credit: Digital Image)
During FY18, other leadership changes were made including the appointment of Allan Winstanley as chief merchandise officer and Nigel Chadwick as chief financial officer.
“With these appointments, Myer bolstered its global retail and financial expertise, bringing best-in-class experience with highly relevant retail, merchandising and financial skills,” chairman, Garry Hounsell said.
Despite the continued challenging retail conditions, the second half performance showed some improvement on the first half. Sales were down 2.6% to $1.38 billion. Comparable store sales were down 2.4%. Operating gross profit was $539 million, which represented an improvement on last year.
Myer has signed a binding term sheet with existing lenders to refinance its bank facility, extending the maturity to February 2021 for the amount of $400 million.