Department store giant Myer has addressed coronavirus fears in a statement to shareholders.
CEO John King said the company is monitoring movements in its supply chain and store traffic.
“The supply chain impact of coronavirus is currently being managed by our teams in Hong Kong and Shanghai," he confirmed.
"The team are focused on mitigating the impact of delays to the planned delivery of merchandise.
"Myer anticipates the challenging macro environment will continue in the second half, and the ongoing impact of the coronavirus on store traffic remains uncertain."
Myer reported a 37% drop in first half profit this week - clearing $24.4 million for the period - as restructuring costs and key brand exits took a toll.
Coronavirus disruptions are expected to weigh in on the second half of the year.
King said he was confident growing online sales, which grew 25.2% to $168.2 million during the half, could alleviate the impact.
"We're trying to drive online as hard as we can because if people are scared to come out, they can shop at home," King said in an analyst call.
Further improvements in merchandise are also underway, he confirmed.
"We have a clear plan to address the underperformance in womenswear with new management and a strengthened design team for Myer Exclusive Brands, with improvements not anticipated until FY21."