Retailer Myer Holdings met its full year 2022 guidance, and said it has posted its best sales start to a new financial year since 2006.
It also followed up its interim payout to shareholders of 1.5 cents a share with a 2.5 cent final, taking the full year payout to 4 cents a share, around 20% of which will go to Solomon Lew and his Premier Investments.
It was the first full year — and the highest payout since the 2016-17 financial year when 5 cents a share was paid.
Lew has been a carping critic of Myer in the past – some of it justified, but he has also attacked the current CEO and management and the retailer has replied with a stellar outperformance in a tough year.
But this year has seen Myer shares outperform those of Lew’s Premier Investments.
Year to date, Myer shares are up 39% at 63.5 cents yesterday (steady on the day after touching a two-year high of 66.5 cents) while Premier shares have fallen 27% this year, closing at $21.82 yesterday, down 0.4%.
Myer revealed on Thursday its net profits rose 5.7% for 2022, reaching $49 million, after the company recorded its best second-half profit result in nine years.
Sales were up 12.5% for the year to just under $3 billion despite COVID lockdowns closing its bricks-and-mortar stores to close off and on throughout 2021. The company said it lost 11.4% of its trading days in the financial year.
The company’s profit figure hit $60.2 million once restructuring costs were omitted, which is 103.8 per cent higher than last year’s numbers, excluding JobKeeper support.
Myer CEO John King said online sales jumped 34% over the year to $722.8 million. Myer also pointed out that it picked up market share for online sales compared with the rest of the industry, with its share rising 191 basis points for the year.
“We are now one of the largest online general merchandise retailers in the country,” he said.
And he pointed out in-store sales had bounced back, with strong momentum despite the retailer’s CBD stores being slower to recover after COVID lockdowns.
Myer saw department store sales up 74.8% in the first six weeks of 2023 compared with the same time last year (which is understandable given that many stores were closed a year ago, especially in Melbourne).
Myer said that the performance of its CBD stores was “subdued” compared to other outlets (in suburban shopping malls).
This performance is “21.8 per cent over pre-COVID levels, demonstrating our best sales start to a new financial year since 2006”, King said.
“Despite the broader economic uncertainty, we are well-placed with the right value-based proposition of affordable and aspirational brands.”
Total earnings before interest, tax, depreciation and amortisation were up 11.6% for the year to $400 million.
Myer said it had $74 million in cash on hand at the end of the year.
