Money Myer profit tumbles 80pc on falling sales and write-downs

12:15  14 september  2017
12:15  14 september  2017 Source:   ABC News

Myer’s drastic revamp following 80 percent profit slump

  Myer’s drastic revamp following 80 percent profit slump Myer's huge profit slump is good news for shoppers, as the retail giant looks to lure customers back through its doors. Myer announced this week its net profit had tumbled a massive 80 percent.It is overhauling its store format in response, and some of the new prices make Boxing Day sales look expensive.The department store's new "clearance floor" has been rolled out in eight locations across the country. © AAP Image/Tracey Nearmy Myer Chief executive Richard Umbers at the doorstop of the Melbourne Myer store.

Key points Myer full-year profit tumbles 80 pc to .9m as brand investments fail ABS figures show department store sales across Australia have fallen in 11 of the past 13 months fashion range again recorded disappointing sales and its book value was written down by

Myer profit tumbles 80 pc on falling sales and write - downs . Mike Williams Sep 14, 2017 0. In the world.

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Is there a “Down, Down” clearance strategy happening at Myer, despite shopper “discount fatigue”?

  Is there a “Down, Down” clearance strategy happening at Myer, despite shopper “discount fatigue”? Department store Myer says an 80% drop in its net profit this year was partly due to “discount fatigue”, but a new approach to clearing stock might indicate the retailer is chasing a brand new breed of shoppers after being forced to <g class="gr_ gr_4 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del" data-gr-id="4" id="4">re-calibrate</g> its plans for high-end concession pop-ups.&nbsp;The retailer reported a net profit of $67.4 million on Thursday, which, after implementation costs and significant items, comes down to $11.9 million.

Myer continues to battle poor consumer sentiment as sales fall and its recent retail investments sour.

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Department store Myer has delivered a threadbare full-year profit of just $11.9 million as top-line sales slipped and the company was forced to take a knife to a number of investments.

The result was 80 per cent down on last year's profit, while underlying earnings — excluding one off gains and losses — of $67.9 million dropped 2 per cent and fell short of analyst expectations.

Sales revenue fell 1.4 per cent to $3.2 billion, however it was a number of impairment charges that really ravaged the bottom line.

Jennifer Hawkins, Myer ambassador © AAP Image/Julian Smith Jennifer Hawkins, Myer ambassador The recently acquired sass & bide fashion range again recorded disappointing sales and its book value was written down by $39 million.

Myer has also written off the entire value of its $6.8 million investment in Australia, which operated the Topshop chain and was put into administration in May.

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Myer 's net profit plunged 80 per cent to .9 million in 2017 - the weakest result since its 2009 initial public offer Same-store sales fell 0.2 per cent over the year, with same-store sales slipping a better than expected 0.2 per cent in the three months ending July after falling 2 per cent in the April quarter.

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Myer chief executive Richard Umbers said it was disappointing to have hit the target of beating last year's underlying earnings and that progress against key measures was slower than anticipated.

A Myer store is seen in Sydney. © AAP Image/Keri Megelus A Myer store is seen in Sydney. However he said a number of initiatives — such as store closures and investments in online sales — had made Myer leaner and a more efficient retailer.

"We have made significant progress to deliver New Myer, which as assisted the company to withstand the challenging retail trading conditions characterised by heightened competition, subdues consumer sentiment and discount fatigue," he said.

Department stores have been the most brutalised sector within retail by tumbling consumer sentiment with ABS figures showing sales having fallen in 11 of the past 13 months.

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