This morning Myer Holdings Ltd (ASX:MYR) reported its half-year results for the 26 weeks to 26 January 2019. Below is a summary of the results with comparisons to the prior corresponding period. Net profit after tax of $41.3m, up 3% Sales revenue of $1.67b, down 2.8% Comparable store sales down 2.3% EBITDA of $113.6m, up 4.9% Online and ‘ominchannel’ sales up 18.6% to $151.2 million Basic earnings per share of 4.8 cents No interim dividend Debt of $95.4 million, net debt down by $57 million Net cash position of $37 million The Myer share price is up 15% or 6 cents to…
This morning Myer Holdings Ltd (ASX:MYR) reported its half-year results for the 26 weeks to 26 January 2019. Below is a summary of the results with comparisons to the prior corresponding period.
- Net profit after tax of $41.3m, up 3%
- Sales revenue of $1.67b, down 2.8%
- Comparable store sales down 2.3%
- EBITDA of $113.6m, up 4.9%
- Online and ‘ominchannel’ sales up 18.6% to $151.2 million
- Basic earnings per share of 4.8 cents
- No interim dividend
- Debt of $95.4 million, net debt down by $57 million
- Net cash position of $37 million
The Myer share price is up 15% or 6 cents to 47 cents in response to the result, with a sales decline of 1.4% in the second (Xmas) quarter representing a significant improvement on a 4.8% sales decline in the first quarter.
Myer and its department store operations remain in the ‘turnaround’ category after the stores suffered from years of underinvestment, with both same store and total sales still falling despite the 18.6% growth in online sales they still only represent less than one tenth of total sales.
Moreover, online sales are not growing as quickly as other retailers that have invested more heavily in the online space.
Despite the falling total sales one positive is that its operating gross profit margin improved thanks to, inter alia, less discounting and the promotion of higher margin Myer Exclusive Brand products.
Its CEO declined to provide any specific profit guidance for the second half other than to state it would stick to the strategy of focusing on “profitable sales”, managing costs and deleveraging the balance sheet.
Using conventional valuation metrics the stock is arguably cheap, but investors need to consider the debt load, competitive headwinds, and inability of the group to reverse its falling sales.
With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.
Hint: These are 3 shares you’ve probably never come across before.
They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”
We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."
Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!
The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.