Myer Holdings Limited (ASX:MYR) Announces Trading Update
Trading Performance Overview
Myer Holdings Limited (ASX:MYR) provided a preliminary trading update for the year to date ending 28 December 2024. Group comparable sales were consistent with the prior corresponding period. Total sales reached approximately $1.592 billion, reflecting a decline of 0.8% due to the temporary closure of the Werribee store. Notably, online sales grew by 2.8%, constituting 22% of total sales in that period.
Operating gross profit was about $560 million, marking a decrease of $15 million year-on-year. Earnings before interest and tax (EBIT) on a pre-AASB16 basis was approximately $48 million, down $16 million on the prior corresponding period. These results were influenced by challenging macroeconomic conditions and elevated costs related to Myer’s new National Distribution Centre.
Executive Comments
Myer Executive Chair, Olivia Wirth, highlighted the stable sales performance amid difficult trading conditions. She noted strong trading during key sales events, including Black Friday, while emphasising that consumer sentiment remains cautious. Wirth stated, “Despite the challenging trading environment, I am pleased to report that we continue to record solid growth in our market-leading MYER one loyalty program.”
Proposed Combination with Premier Investments
Myer has entered into a Share Sale and Implementation Agreement with Premier Investments Ltd to create a transformational combination of Myer and Apparel Brands. This move requires approval from Myer shareholders, who will convene at an Extraordinary General Meeting on 23 January 2025. Shareholders will have the option to participate in person or online.
Independent Directors of Myer have expressed unanimous support for this strategic move, underscoring the significant potential for enhanced market position, diversification, and cost synergies across operations.
This announcement was authorised by the Board of Myer Holdings Limited.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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