HVN, MYR: A look at 2 ASX retail stocks

Highlights:

• Harvey Norman Holdings Limited (ASX: HVN) and Myer Holdings Limited (ASX: MYR) ended Wednesday, declining by 0.833% and 2.272%, respectively.
• In 1H FY23 ended 31 December 2023, HVN’s total system sales revenue was at AU$4.98 billion.
• In 1H FY23 (26 weeks) period ended 28 January this year, total sales rose by 24.2% to AU$1,884.9 million on pcp.

The latest interest rate hike by RBA on Tuesday, by 25 bps to 3.85% and inflation in Australia at 7% has affected the overall market sentiments. On Wednesday, 3 May 2023, the benchmark index S&P/ASX 200 ended the day lower by 0.96% to 7,197.40 points. Retail companies like Harvey Norman Holdings Limited (ASX: HVN) and Myer Holdings Limited (ASX: MYR) also ended the trading session declining by 0.833% and 2.272%, respectively.

Let’s now look at the 2 ASX retail stocks – HVN and MYR.

Harvey Norman Holdings Limited (ASX: HVN)

The integrated retail franchise system offering an extensive product range closed Wednesday down by 0.833% to AU$3.570.

In 1H FY23 ended 31 December 2023, HVN’s total system sales revenue was at AU$4.98 billion. Reported PAT & NCI was at AU$365.90 million, declining by 15.1% from pcp.  

In 1H FY23, two HVN-operated stores were inaugurated in Ireland and Malaysia. The total overseas retail revenue decreased by 1.1% from pcp.

In 2H FY23, HVN plans to open further franchised complex in Australia and anticipates opening three new company-operated stores in FY24. In Malaysia, HVN intends to grow from 28 stores to 80 stores by 2028 end. The Malaysian expansion plans will be financed from the present cash reserves in Malaysia and from Malaysian operating cash flows.

Myer Holdings Limited (ASX: MYR)

The operator of 57 department stores along with online business closed the market session of Wednesday, declining by 2.272% to AU$0.860.

In 1H FY23 (26 weeks) period ended 28 January this year, total sales rose by 24.2% to AU$1,884.9 million on pcp driven by a return of people to physical retail. MYR’s online sales decreased by 9.8% to AU$382.3 million as consumers migrated back to Bricks and Mortar stores.

In the reported period, the company’s NPAT increased by 101.4% to AU$65 million. On 31 December last year, the net cash of the company was AU$267 million, solidifying its balance sheet.

For the 1H FY23 period, MYR’s board declared a distribution of 4 cps and a 100% franked special dividend of another 4 cps, totalling 8 cps, which is payable on 11 May 2023.