Myer Holdings Limited (MYR) today reported first quarter
total sales for the thirteen weeks to
29 October 2011 of $681.4 million, down 3.5 percent compared
to last year. On a like-for-like basis, sales were down 5.1
percent compared to last year.
Total sales excluding rationalised Electrical categories
(whitegoods, movies and music, gaming, consoles, GPS and MVM
brand), were down 2.7 percent. Our decision to rationalise
our Electrical offer continues to impact sales, however these
decisions are expected to result in sales from higher margin
categories as floor space is reallocated. The range
rationalisation is expected to be completed by the end of 1H
FY2012.
The key categories of Womenswear and Youth continued to be
the strongest performers during the quarter.
In October we opened our new store at Mackay in Queensland
which has had very pleasing trading during the first four
weeks and already has over 16,000 MYER one customers.
Construction at Townsville (Queensland) is progressing well
and the store is scheduled to open in the second half of
2012.
The Liverpool (New South Wales) store refurbishment is on
track to be completed by Christmas
2011 and the Carindale (Queensland) refurbishment has
commenced and is expected to be completed by April 2012.
As part of our focus on becoming a leading omni-channel
retailer, the first phase of our website rebuild is underway
with some improvements already implemented. Our online sales
continue to grow with our customers responding well to our
offer of free delivery on most merchandise. We anticipate
delivering the next stage of improvements by March 2012.
Myer Chief Executive Officer, Bernie Brookes, said that while
the trading environment during the first quarter continued to
be challenging, the result was in line with our
expectations.
"Pleasingly, as the quarter progressed sales gradually
improved against last year," Mr Brookes said.
Myer Holdings Ltd. ABN 14 119 085 602
"Myer Melbourne recently won the World Retail Award for Best
Store Design and is trading well up on last year. We have
also been especially encouraged by the positive customer
response to our new store in Mackay," he said.
"We welcome the recent interest rate cut as we head into the
critical Christmas trading period. The whole team is focused
on ensuring our stores are well presented with merchandise to
inspire our customers to 'Jump In' and see what we have in
store for Christmas," he said.
"With our significant investment in store wages and service
training we look forward to providing our customers with an
improved level of service in our stores. We are also
confident that our customers will respond well to our new
Summer ranges as well as our reinvigorated Stocktake Sale
commencing on Boxing Day," he said.
Our guidance remains unchanged. Assuming no deterioration in
trading conditions, we anticipate FY2012 sales
to be flat and net profit after tax (NPAT) to be up to 10
percent below FY2011 NPAT of $162.7 million.
Global and domestic economic conditions will dictate when
consumer confidence returns to more normal levels. Myer is
very well positioned to benefit from any improvements in
discretionary retail conditions when they occur.
For further information please contact:
Davina Gunn, Investor Relations Manager, +61 (0) 400 896 809
Media:Jo Lynch, General Manager Corporate Affairs, +61 (0) 438 101 793
This release includes "forward-looking statements". Forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "outlook", "guidance" or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Myer, and its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and Myer assumes no obligation to update such information.
Myer Holdings Ltd. ABN 14 119 085 602