First half results for Myer have declined 0.6%, even though the company has reported a 5.3% growth in net profit after tax.
Myer's growth in profit increased to $62.8 million “against a backdrop of aggressive competition.”
However, first half total sales declined 0.6% to $1,784.6 million, increasing by 0.3% on a comparable store basis.
Myer CEO and managing director Richard Umbers said the company had delivered encouraging sales around key trading periods such as spring racing and Christmas.
Sales were offset by subdued results during the stocktake sale which resulted in modest comparable store sales growth for the half.
“The improved profit result was achieved against a backdrop of aggressive competition with heavy discounting both before and after Christmas and patchy consumer confidence.
“We are 18 months into our five year transformation and I am pleased with the progress we have made. We are a better and stronger company as a result of the New Myer strategy.
“We have made significant progress on our focus to deliver wanted brands and enhance customer service, and this work continues.”
Sales in the second quarter fell by 1.3%, which was a decline of 0.5% on a comparable store basis.
This compares to growth in total sales of 0.6 % in the first quarter, and growth of 1.6% on a comparable stores basis.
Sales per square metre (on a 12 months rolling basis) increased by 3.4% in the period.
Myer Exclusive Brands (MEBs) displayed a weaker performance when compared to sales in concessions, which grew by $76.5 million to $386.2 million. MEB sales were down by $39.4 million to $300.2 million.
Myer will still anticipate EBITDA growth to exceed sales growth in FY2017, regardless of the poor sales throughout January and February.