Myer, Australia’s largest department store chain, has reported a huge decline in annual profit, revealing it has posted a decline of 14.3 per cent in full-year net profit.
The profit dive was better than the 15 per cent drop the industry had been predicting but was still the worst result for Myer since its relisting. Asked by analysts yesterday to provide sales and profit guidance for this financial year, Myer chief executive Bernie Brookes was unable to, opting instead to cite a range of factors that may further offset future profit.
Brookes said the department store had delivered a ”solid result” in the middle of a difficult retail environment with notably subdued consumer confidence and some price deflation across a range of product lines.
Full-year sales were down 1.3 per cent to $3.119 billion, but Myer’s operating gross profit did prove the result of some tightening of costs, rising 1.3 per cent to $1.288 billion. Another factor in Myers’ figures could have been the fact the retailer is refurbishing three of its top 20 stores, and closed another, at Dandenong. Costs are also up because it is investing, in more stores and its online retailing network.
Last month, Australia’s biggest retailer, Woolworths, posted its first annual profit decline in more than 10 years, while other businesses such as JB Hi-Fi, Harvey Norman and Specialty Fashion Group also recorded big earnings setbacks.
