Myer upbeat despite Hobart fire
MELBOURNE: Myer has moved quickly to dispel fears over the financial impact of the blaze that destroyed its Hobart store last month.
Announcing its full year results to July 28 2007 in Melbourne on September 25, days after the catastrophe, the retailer claimed the fire had caused "some sales impact but limited EBIT [earnings before income tax] impact" going forward. Myer's FY08 guidance –which predicted sales growth of 3.5 per cent on FY07 - excluded sales from the Hobart store for 10 months.
Myer national PR manager Mitch Catlin, who spoke to Ragtrader following the results announcement, said it was too early to put an exact figure on the extent of the damage.
"The figure of $50 million is something that the media has been talking about, but all I would say is that it could be somewhere in the tens of millions."
With womenswear located on the side of the store where the main fire damage occurred, compensation arrangements for Myer suppliers were too complex to comment on, he added.
"At the moment those matters are in the hands of the insurers. Our main objective is to get back in business as soon as possible," he said, adding Myer would establish a temporary version of the Hobart store until Christmas.
The fire was a blot on an otherwise buoyant results season for Myer, which posted total sales up 3.6 per cent to $3,289 million on the previous financial year, with EBIT up 147 per cent to $180 million.
In his results statement Myer CEO Bernie Brookes confirmed brand expansion through the opening of 19 new stores – bringing the total number to 80 -- would be a key driver of growth over the next five years. Meanwhile the sale and long term lease-back of Myer's Bourke Street Melbourne store in FY07 had enabled its refurbishment to a "flag-ship international standards" by November 2009, he said.
The move would consolidate Myer's vision "to be an international class retail business providing inspiration to everyone" with a sweeping overhaul promising to improve supply chain, supplier relations, customer service and branded retail capabilities.
An enhanced "brand hierarchy" of fashion would form Myer's core offer going forward, Brookes confirmed, with internationally recognised brands including Narciso Rodriguez, Donna Karan, Cacharel, Nicola Finetti, Jayson Brunsdon, Camilla & Marc and Josh Goot; classic Australian brands including Cue, Country Road, Sportscraft, Review and Jag; and proprietary and designer collaboration brands including Maticevski, Wayne by Wayne Cooper and Hi There Karen Walker complemented by Myer's suite of on-trend private brands such as Basque and Blaq.
By Belinda Smart