Finance Finance News Myer reports full-year loss of $172 million

Myer reports full-year loss of $172 million

Myer has suffered major losses as a result of the pandemic. Photo: Getty
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Myer has reported a full-year loss of $172.4 million after sales fell more than 15 per cent from store closures due to the coronavirus pandemic.

Myer closed its 60 stores for most of April and May, and the retailer had fewer customers for most of the second half of the financial year.

The virus impact was greatest at its CBD stores, Myer says, which are generally larger and have higher rents.

Total sales dropped 15.8 per cent to $2.5 billion. Impairment costs to brand names of $95.9 million were a big part of the net loss after tax, which covers the 52 weeks to July 25.

Chief executive John King preferred to talk about online sales, which rose by 61.1 per cent to $442.5 million. This accounted for 17 per cent of total sales.

Beauty and homewares goods had the biggest growth in online orders.

Myer’s online-only competitors such as Kogan and Temple & Webster have boomed during the pandemic as shoppers decided not to visit retailers.

Myer is furthering its online push. In August it struck a deal with Australia Post to provide warehousing and online fulfilment services.

Mr King said this would help grow Myer’s online business. The group has also introduced parcel pick-up points for Amazon customers at 21 stores.

The business has revised and extended its bank lending facility to August 2022. The facility is for $340 million, lower than the previous one of $360 million.

No final dividend will be paid to shareholders, which is the same as the 2019 final payout. Shares were lower by 13.73 per cent to 22 cents at 1136 AEST.