Myer (MYR) H2 2024 earnings summary

Executive summary

• FY24 total sales declined 2.9% to AUD 3.266 billion due to tough consumer environment and store closures, while group comparable sales rose 0.4% and online sales grew 2% to AUD 704 million, now 21.6% of total sales.

• Net profit after tax fell 26% to AUD 52.6 million, with about half the decline from underperforming specialty brands and impacts from store closures.

• Strong customer engagement with record loyalty program participation: 4.4 million active members and a tag rate of 77.2%.

• Strategic review underway, focusing on private label growth, exclusive brand reset, and potential combination with Premier Investments' Apparel Brands.

• Strong cash flow and balance sheet maintained, with net cash at AUD 114 million at period end.

Financial highlights

• Operating gross profit margin was resilient at 36.6%, up 15bps year-over-year, with operating gross profit down 2.5%.

• EBITDA dropped 10.2% to AUD 359.7 million; EBIT down 17.1% to AUD 162.7 million.

• Statutory NPAT was AUD 43.5 million, including significant items and implementation costs.

• Operating cash flows before interest and tax were AUD 374 million; free cash flow improved to AUD 181 million.

• Full-year fully franked dividend of AUD 0.035 per share declared.

Outlook and guidance

• Trading conditions remain challenging, with no significant macroeconomic improvement seen.

• First seven weeks of FY25 show department store comparable sales up 0.2% year-over-year.

• Strategic review to conclude later in the year, with an investor strategy session planned post-Apparel Brands due diligence.