Myer (ASX:MYR) posts A$46 million profit boosted by online sales

Highlights 

  • Myer Holdings has reported impressive growth in its sales in its FY21 results announced today.

  • Backed by the announcement, the shares of Myer Holdings saw a drastic jump of over 16%.

  • Myer also revealed that JoAnne Stephenson has been appointed as the Chairman of the Board.

Retailing bigwig Myer Holdings Limited (ASX:MYR), having department stores across Australia, announced its annual financial report for the period ended 31 July 2021. The Company has reported impressive growth in its sales despite government-mandated store closures and travel restrictions, particularly in 1Q21 and 4Q21.

Post this announcement, the shares of Myer Holdings saw a drastic jump of over 16% to close at AU$0.595 per share on the ASX.

The highlights of the FY21 results announced by the Company today are as follows:

(Note: The FY21 results are for the 53 weeks to 31 July 2021, compared to FY20)

  • Total sales increased by 5.5% to AU$2,658.3 million.

  • Continued strong growth in Group online sales up 27.7% to AU$539.5 million.

  • EBIT increased by 117.0% to AU$170.5 million.

  • Net Profit after tax (NPAT) AU$51.7 million, up from a loss of AU$13.4 million in prior year.

  • Statutory NPAT AU$46.4 million, up from a statutory loss of AU$172.4 million in the prior year.

  • Solid 2H21 performance with comparable-store sales up 8.4%, EBIT of AU$61.5 million and NPAT of AU$8.8 million represents the first profit achieved in the second half since FY17.

The Company said that its EBITDA has grown by 27.7% to AU$390.0 million.

Myer informed that it would not be paying any final dividend for the period ending 31 July 2021.

Bottom Line

Despite the ‘on again-off again’ nature of physical retail over FY21, due to the pandemic, the Company has solid sales growth, especially in 2H21, when combined with continued growth in the online business. The Company has focused primarily on profitable sales, growth in its online business, disciplined management of costs, cash, and inventory over the past three years. Today, the drastic rise in the share price of the stock MYR shows that the investors are pleased with the Company’s FY21 results.

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