In This Article:
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Total Sales: Down 2.9% to $3.266 billion.
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Comparable Store Sales: Increased by 0.4% for the year.
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Online Sales: Up 2% to $704 million, representing 21.6% of total sales.
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Net Profit After Tax (NPAT): Down 26% to $52.6 million.
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Net Cash Flow: Outflow of $3.7 million, an improvement of $60 million on FY23.
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Dividend: Total full-year dividend of $0.035 per share, fully franked.
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In-Store Experience Satisfaction: Up 210 basis points to 85%.
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MYER one Members: 4.4 million active members, with a tag rate of 77.2% of sales.
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EBITDA: Declined 10.2% to $359.7 million.
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Operating Gross Profit Margin: Slight increase to 36.6%.
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Cost of Doing Business (CODB): Increased 1.3%, broadly flat excluding reclassification.
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Inventory: Clearance inventory reduced from 8% to 7.7% of total inventory.
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Net Cash Position: $114 million, down $6 million year on year.
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Store Closures: Brisbane, Frankston, and Werribee stores closed for all or part of the year.
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Store Refurbishments: Completed at Chermside, Marion, Tea Tree Plaza, and Ballarat.
Release Date: September 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Myer Holdings Ltd (ASX:MYR) reported a 0.4% increase in group comparable store sales for FY24, showing improvement despite challenging conditions.
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Online sales grew by 2% to $704 million, constituting 21.6% of total sales, with a 9% improvement in profitability.
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Customer satisfaction levels reached a record high of 85%, indicating strong in-store experience improvements.
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The MYER one loyalty program achieved a record year with 4.4 million active members, demonstrating strong customer engagement.
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The company maintained a robust balance sheet with $114 million in net cash, providing a platform for future growth initiatives.
Negative Points
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Total sales for FY24 were down 2.9% compared to FY23, impacted by store closures and challenging macroeconomic conditions.
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Net profit after tax decreased by 26% to $52.6 million, partly due to the underperformance of specialty brands sass & bide, Marcs, and David Lawrence.
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The company faced inflationary pressures, leading to a 1.3% increase in the cost of doing business.
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Shrinkage and stock adjustments remained a significant cost, totaling $46 million for the year.
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The new distribution centers are not yet fully operational, delaying expected benefits from these investments.
Q & A Highlights
Q: How is Myer performing in the current market, especially with different age cohorts? A: Olivia Wirth, Executive Chairman and CEO, stated that while macroeconomic conditions remain challenging, Myer is well-positioned to capture any market upside. The MYER one program continues to grow, attracting a younger demographic, which is crucial for future sales growth.