MELBOURNE: Myer has reported a 0.7 per cent increase in year-on-year sales despite a challenging fourth quarter.
The department store revealed total sales for the year to July 24, 2010 were $3.28 billion. Myer expects its full year earnings before interest and tax to measure between $265 million and $272 million, ahead of its prospectus guidance of $261 million.
However the retailer revealed sales in the fourth quarter of 2009/10 dropped 1.4 per cent compared to the previous year. Myer CEO Bernie Brookes said fragile consumer confidence meant it had been a “very challenging” period.
“Delivering sales growth in the fourth quarter was always going to be a challenge given that sales in the prior year benefited from significant Federal Government Stimulus payments. During the quarter we used a number of levers to drive sales, including repeating our 'Secret Sale'... and executing a successful 'Stocktake Sale,” Brookes said.
“These initiatives, together with the work we have done to improve our merchandise offer, the benefits we are seeing from our efficient, low cost supply chain and a continuing focus on cost control, underpinned our performance during the quarter.”
The department store affirmed it was entering a new phase of growth, with 14 new store openings planned for the next four years.
Brookes said Myer would release its full year results breakdown on September 16, 2010.