Image: Canva.
  • FY22 NPAT is expected to be an increase of between 86% and 103% over last financial year
  • Sales for both 2H22 and FY22 have been up
  • Online sales made up 24% of total sales

Myer (ASX: MYR) has provided a trading update, with the company announcing 2H22 total sales were up between 16.5% to 17.3% compared to the previous corresponding period.

Sales for FY22 are also up, Myer said between 12.3% and 12.7% or $2.985 billion and $2.995 billion. The last financial year was $2.658 billion.

Online sales also continued to grow substantially at between 32.5% to 34.4% compared to the last financial year, with online sales representing circa 24% of total sales (between $715 million and $725 million).

Net profit after tax for 2H22 is between $23 million and $28 million, up between 160% and 217% compared to 2H21 NPAT of $8.8 million.

The full-year NPAT is between $55 million and $60 million, representing an increase of between 86% and 103% if JobKeeper is excluded from the prior year. FY21 results included JobKeeper support of $22 million after tax.

Myer also said it expected to finish FY22 in a positive net cash position of more than $155 million, compared to $112 million at the end of FY21. Department store stock on hand is currently 9.6% higher than the same time last year, mainly reflecting acceleration of intake in response to global supply chain delays. Clearance inventory continues to be well managed at 6.2% of current department store stock on hand.

“Execution of the Customer First Plan continues to deliver positive outcomes for the business with all categories achieving sales growth over FY21, despite more trading days lost due to COVID this year,” commented Myer CEO John King.

Retail snapshot

The retail space appears to be recovering well, Australian Bureau of Statistics data, as quoted in Colliers’ Australian Retail Snapshot for Q2 2022, said retail sales grew 0.9% in May 22, exceeding expectations growth would only be 0.4%. This makes it the fifth consecutive month of sales growth in the market.

The report also noted retail sales growth in May was driven by growth for eating out (+1.5%) and department stores (+5.1%).

Consumer sentiment is either continuing to fall, or at its lowest, depending on the source and time, with wider concerns about inflation, interest rates, global uncertainty, and more, likely to see consumers tighten purse strings.

That was the only ‘bad news’ in the retail space, with the report broadly showing CBD retail making a strong recovery, particularly with office workers making a comeback.

The Colliers report also said over Q2 2022, rents were stable across the country, and footfall for shopping centres also stabilised. It was noted, however, that there remains upward pressure on incentive levels, which will continue as fitout costs will likely increase through the year.

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