Myer's first-half results better than expected
The AFR reported that Myer returned to profit growth in the January-half, reporting a 3.1% rise in underlying net profit to a better-than-expected $41.3 million, after slashing costs and boosting sales of higher-margin private label brands to counter weaker concession sales. Total sales fell 2.8% to $1.67 billion in the six months ended January 26 as Myer exited unprofitable products such as furniture and bedding to focus on apparel, beauty and private-label goods and as dozens of concessions closed. Same-store sales fell 2.3% in the half after falling 3% in the year-earlier period. Myer's bottom line net profit rebounded to $38.4 million compared with a $476 million loss in the year-ago period, when the retailer wrote down the value of goodwill, brand names and other intangible assets by $515 million and booked $13.7 million in restructuring costs.