Department store Myer has today announced a drop in sales for the first quarter of its fiscal year.
Sales for the thirteen weeks to October 29, of $681.4 million, were down 3.5 per cent compared to last year. On a like-for-like basis, sales were down 5.1 per cent compared to last year.
The key categories of womenswear and youth continued to be the strongest performers during the quarter for Myer.
Myer chief executive officer, Bernie Brookes, said that while the trading environment during the first quarter continued to be challenging, the result was in line with the brand's expectations – he also welcomed the recent interest rate cut before the 'critical Christmas trading period'.
“The whole team is focused on ensuring our stores are well presented with merchandise to inspire our customers to jump in and see what we have in store for Christmas,” Brookes said. “With our significant investment in store wages and service training we look forward to providing our customers with an improved level of service in our stores.”
Total sales excluding rationalised electrical categories were down 2.7 per cent. Myer said its decision to rationalise its electrical offer continues to impact sales, however these decisions are expected to result in sales from higher margin categories as floor space is reallocated.
Assuming there is no deterioration in trading conditions, Myer anticipates FY2012 sales to be flat and net profit after tax (NPAT) to be up to 10 per cent below FY2011 NPAT of $162.7 million.