Myer Holdings Limited (MYR) today announced its financial results for the 53 weeks to 30 July 2016, marking the first year of the New Myer strategy.
Myer Chief Executive Officer and Managing Director, Richard Umbers said: “After 12 months in our five year New Myer journey we have made pleasing progress on our transformation and at the same time delivered a net profit result in line with guidance.
FY2016 in summary
• Sales up 2.9% to $3,289.6 million, up 3.0%* on a comparable store basis
• On a 52-week basis, total sales were up 1.6% to $3,245.9 million
• Comparable stores sales in Flagship and Premium stores in Victoria and NSW increased by 5.6%
• Operating gross profit margin 164 basis points lower reflecting strong concession sales and lower Myer Exclusive Brands (MEB) sales
• Disciplined cost focus led to 93 basis points reduction in CODB/sales
• Operating cash flow improved by $36 million
• FY2016 NPAT of $69.3 million in line with guidance
• Statutory NPAT of $60.5 million (after implementation costs associated with New Myer of $8.8 million post tax)
• Final dividend of 3.0 cents per share fully franked, to be paid on 10 November 2016 (Record Date is 29 September 2016)
New Myer Strategy Update
“There is no doubt that as a result of our strategy, Myer is a measurably stronger business today than it was a year ago,” Mr Umbers said.
“Our early progress shows Myer in a new light, where the focus on customers, brands, service, efficiency and productivity is evident in our results.
“The first year of the New Myer strategy demonstrates the complexity of our journey. The strong customer take up of our wanted brands has impacted margin and mix. Higher concession sales contribute to improved service and lower costs over time, but reduced gross profit margin.
“Since August 2015 we have introduced over 850 new or upgraded brand destinations and markedly improved our customer service, particularly in our Flagship and Premium stores.
“We still have a long...