NATIONAL: Myer has revealed it will bolster its first half profit increase with the addition of three luxury labels to its premium apparel offering.
The department store has announced profit after tax for the six months to January 23 was up 38 per cent on the first half of 2008/09 to $115 million, excluding costs associated with its initial public offering. Total sales were up two per cent to $1,797 million, as previously anticipated by the retailer.
In addition to the profit uplift, Myer CEO Bernie Brookes revealed the department store will expand its luxury apparel offering with the addition of the Givenchy, Philosophy Di Alberta Ferretti and Moschino labels to its range. They will join other recent additions to Myer's luxury portfolio, including international brands Balmain, Temperley London and Calvin Klein Collection and home grown labels Fernando Frissoni, Aurelio Costarella and Nina Maya.
Brookes said such changes to Myer's product offering, combined with other company overhauls, had led to the seventh successive half year of profit growth since the acquisition of Myer from Coles Myer Ltd.
“The 38 per cent increase in net profit after tax is well in advance of the prospectus guidance and, together with our strengthened balance sheet, has led to a dividend being declared, which is at the top of the prospectus range,” Brookes said.
He added that the company was nearing the end of its 'turnaround phase', with a new point of sale system, a new support centre and new stores in Top Ryde and Robina on track for completion in 2010.
The company anticipates sales growth for the full 2009/10 year will be between one to two per cent.