NATIONAL: Department store Myer has faced off weak consumer sentiment and falling sales to post a "solid" half year result.
Announcing results for the six months ended January 2009 this morning, Myer chairman Bill Wavish said the figures represented "the best half year we have produced to date".
CEO Bernie Brookes confirmed earnings before interest and tax were up 6.6 per cent to $161 million, while net profit after tax was up 5.3 per cent to $83 million.
Myer had also gained market share over the past 12 months, with customers responding well to increased targeted promotional activity and better in-store execution. It also finished the period with $224 million cash and a clean inventory position, Brookes said.
Having completed 32 months of its 50 month turnaround phase, the retailer had implemented further improvements to the Myer One Loyalty Program, with more than 2.6 million members accounting for over 60 per cent of sales compared to 43 per cent in 2006.
With refurbishments undertaken or completed including the Melbourne, Doncaster, Geelong, Sydney Castle Hill and Blacktown sites, nine new leases had been signed in the previous 12 months, taking the chain from 65 to 74 stores, with a further six leases currently under negotiation.
"The work undertaken in the first 32 months of the 50 month turnaround phase has given us a more flexible platform to manage the business in a difficult economic environment and we are pleased with our sales performance against this backdrop," Brookes said.
"Our strong cost control, variabilised cost base, quicker responses and the cemented changes in buying and ranging, combined with improved store execution and targeted advertising have enabled us to stay ahead of the curve and deliver increased profits, despite a fall in sales."