Myer (MYR) $0.63 as at 05/09/2019
Shares in the department store are having one of their best days in some months today after the company managed to bounce back into profit for FY19. The $33.2m NPAT was marginally better than the street expected while on a statutory basis Myer swung from a $486m loss last year to a $24.5m gain in FY19.
Myer shareholders have felt pain from pretty much day 1 when they listed back in 2009 as retail struggled to get any traction and customers turned their back on the low touch, large offering model. Myer’s lease obligations as well as poorly constructed agreements with brand partners also hurt the market’s view of Myer. This result looks to be a turning of the corner for the company, with the turnaround story starting to take effect, although sales continue to slide, falling 3.5% to $2.99b.
The company continues to reduce floor space, with up to 10% of current space under review, in an effort to reduce costs while also working on savings in the supply chain. Myer didn’t give guidance for FY20 but did note a focus on the online space as well as deleveraging along with the cost control.
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