Myer (MYR) H2 2024 earnings summary

Executive summary

• FY24 total sales declined 2.9% to AUD 3.266 billion, mainly due to tough consumer environment and store closures, while group comparable sales grew 0.4% year-over-year, with 2H24 up 0.8%.

• Net profit after tax fell 26% to AUD 52.6 million, with about half the decline from underperforming specialty brands such as sass & bide, Marcs, and David Lawrence.

• Online sales rose 2% to AUD 704 million, now 21.6% of total sales, and MYER one loyalty program reached record engagement with 10.4 million members and 4.4 million active customers.

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

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

Financial highlights

• Operating gross profit declined 2.5% to AUD 1,194.4 million, with margin up to 36.6% due to a delivery income reclassification.

• 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 AUD 9.1 million in significant items.

• Operating cash flows before interest and tax were AUD 374 million; cash conversion increased to 106%.

• 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.

• Cautious approach maintained, but well-positioned for any market upswing, especially in Q2 peak trading.

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