Finance Finance News Myer profit falls as sales stagnate

Myer profit falls as sales stagnate

Share
Twitter Facebook Reddit Pinterest Email

Department store Myer has posted an 8.1 per cent slide in first-half profit, as sales barely grew.

Myer made a net profit after tax of $81 million for the key retail half-year period that ended on January 25.

The retailer says that fall in profit came despite a 0.3 per cent rise in total sales compared to the same period last year to $1.74 billion, and a 1.2 per cent rise when a store closure was factored in to the comparison.

Myer says its gross profit margin was down 21 basis points to 41 per cent.

The retailer’s profit was also hit by a 2.1 per cent rise in the cost of doing business (staff, rents, utilities, etc) to $540 million.

However, it did manage to reduce its net debt by 5 per cent to $230 million.

Myer will pay an interim dividend of 9 cents per share, fully-franked, on May 8 for shareholders who hold a stake as at March 31.