How investors reacted to half yearly results.
Myer’s stakeholders gave the company a thumbs up yesterday which resulted in the share price lifting by 12.7% after its half yearly results were released. While the highlight was a total sales increase of 1.8% to $1,794.8 million, up 3.3% on comparable store sales basis, the nuts and bolts included:
- Sales per square metre for the period increased by 4.1% to $2,241 compared to prior period
- Sales growth averaging 5.6% in 12 Victorian and New South Wales Flagship and Premium stores, up 7.1% on a comparable store sales basis, reflecting the priority focus on these stores for implementation of New Myer initiatives
- Operating gross profit (OGP) of $694.1 million with margin 187 basis points lower to 38.7%
- Cost of doing business (CODB) of $555.5 million with margin improving by 135 basis points to 31.0%
- EBITDA of $138.5 million with margin 52 basis points lower at 7.7
- Net profit after tax (NPAT) of $59.7 million down 4.0%
- Basic earnings per share (EPS) 7.9 cents (1H2015: 10.6 cents)
- Return on funds employed (ROFE) stabilised at 10.9%
- Interim dividend of 2.0 cents per share, fully franked, to be paid on 5 May 2016 (Record Date is 29 March 2016)
- Full year 2016 NPAT guidance range revised to between $66 million and $72 million, (previously $64 and $72 million), excluding implementation costs associated with New Myer
- Positive customer response to new wanted brands and enhanced customer service that supports New Myer strategy
Myer CEO and managing director, Richard Umbers (pictured above) said, “Only months into the first year of our five year strategy, we are pleased with the early progress and positive customer response to initiatives delivered under the New Myer strategy, particularly in our Flagship and Premium stores.
“Our first wave of initiatives to deliver wanted brands, enhanced customer service and an improved omni-channel experience have helped deliver comparable store sales growth of 7.1 percent across 12 Victorian and New South Wales Flagship and Premium stores.
This is a very encouraging result. We have a significant pipeline of further improvements and the team has a strong focus on execution,” Umbers said.
Myer achieved a solid trading performance over Christmas and the Stocktake Sale period with a strong customer response to the Christmas Giftorium and new marketing campaigns.
“There has been significant progress in executing initiatives across each of our four strategic priorities of the New Myer strategy,” he added.