Key Highlights
Trading Performance (22 Weeks YTD)
- Group Comparable Sales: Flat compared to the prior corresponding period (PCP).
- Total Sales: Down 0.8% to $1,592 million, impacted by the temporary closure of the Werribee store (14 Feb – 29 Nov 2024).
- Online Sales: Up 2.8% on PCP, accounting for 22% of total sales.
- Operating Gross Profit: Approximately $560 million, down $15 million on PCP.
- EBIT (Pre-AASB16): Estimated at $48 million, a $16 million decline on PCP.
Factors Impacting Performance
- Challenging macroeconomic conditions affecting consumer spending.
- Increased costs and operational complexities during the ramp-up of the new National Distribution Centre in Ravenhall, delaying anticipated efficiencies.
Comments from Executive Chair Olivia Wirth
“Despite challenging trading conditions driven by persistent cost-of-living pressures, Myer’s sales performance has been stable. Strong sales during key events like Black Friday highlight consumers’ focus on value. Growth in the MYER one loyalty program continues to be a bright spot.”
Proposed Combination with Premier Investments’ Apparel Brands
- Transformational Opportunity:
The combination is expected to enhance Myer’s market position by leveraging scale, diversification, and synergies in supply chain, sourcing, property, and brand management. - Extraordinary General Meeting (EGM):
- Date: 23 January 2025 at 9:00 AM (Melbourne time).
- Format: Hybrid Meeting (in-person and online).
- Shareholder Approval: A majority vote is required for the combination to proceed.
- Independent Directors’ Recommendation:
The board unanimously supports the combination, urging shareholders to vote in favor, subject to the Independent Expert’s conclusion that the proposal is fair or reasonable.
Outlook
- January’s Trading Period: Critical to the overall performance for the half-year ending 25 January 2025.
- H1 Results Release: Expected in March 2025.
Investor Takeaways
Myer’s stability in a tough retail environment, paired with strong growth in online sales and loyalty programs, underpins its resilience. The Proposed Combination with Premier’s Apparel Brands offers a significant opportunity for transformation, with potential synergies and revenue growth driving shareholder value.
Investors should monitor the EGM outcome and January trading performance closely.
