Australian department store Myer has doubled its net profit after tax (NPAT) to $65 million for the first half of FY23, following rival David Jones in a strong start to the year.
Myer posted a 101.4% growth in NPAT for the period, its best result since 2014. The retailer also reported record sales for the half of $1.8 billion, up 24.2% year-on-year, and 17.2% higher than H1 FY20.
CBD stores were the strongest channel in H1 FY23, increasing 53.7%, or 20% on a comparable basis when lockdown periods are excluded.
While online sales were down 9.8%, the channel recorded a three-year compound annual growth rate of 31.5%.
Myer CEO John King said the department store has seen strong growth in loyalty transactions and store traffic. Sales for the eight weeks following Christmas are up 16.1% year on year.
“Our omni-channel offer is strong, we continue to invest in Myer One, one of the country’s most effective retail loyalty programs, and have also demonstrated our ability to capitalise on customers returning to stores and CBD locations through a targeted program of store space optimisation, a stronger merchandise offer, key refurbishments and improved customer service," King said.
Myer One saw a tag rate of 73.5% across all transactions, the highest level since public listing in 2009. It now has an active membership of 4.1 million, with new member acquisitions up 36.1% as Myer increases partnership programs.
Myer recently announced a partnership with American Express, alongside existing ventures with Commbank and Virgin.
"Partnerships across Commbank, Virgin and American Express continue to deepen the value offered to customers and in turn will provide greater revenue and growth opportunities for our business," King said.