Myer has recorded a net loss after tax of $479.2 million for the 26 weeks to 27 January, 2018.
This includes a non-cash impairment charge of $500.2 million (post tax) on the carrying value of its goodwill and brand name.
The shocking first half result follows an aggressive campaign by Myer shareholder and industry powerbroker Solomon Lew.
Lew is seeking to overthrow the board and restructure the department store.
New Myer executive chairman Garry Hounsell said changes are underway.
“Since becoming executive chairman, I have been driving the management team to trade the business more aggressively. To achieve this, I have renewed the entire team’s focus on product, price and customer service. These are strongly endorsed by the Myer Board.”
First Half 2018 Result vs. First Half 2017
• Total sales declined by 3.6% to $1,719. 7 million, and were down 3.0% on a comparable store basis
• Online sales grew by 48.9% to $105. 2 million, following a 48.4% increase in 1H2017
• Operating gross profit (OGP) declined by 5.5% to $645.4 million and OGP margin declined by 73 basis points to 37.5 3%
• Cost of Doing Business (CODB) was down by 0.3% to $537.1 million
• NPAT pre -implementation costs and individually significant items decreased by 36.1% to $40.1 million
• Non-cash impairment charge relating to Myer goodwill and brand name of $515.3 million (pre- tax), and other asset impairments of $ 9.2 million (pre -tax)
• Implementation costs associated with the Strategy of $13.7 million (pre- tax)
• Statutory NPAT was a loss of $476. 2 million
• Net debt was $19.9 million at the end of the period, with available liquidity of $400 million
• Strong operating cash flow (before interest and tax) of $ 180 million despite lower trading performance , and capex down to $55 million