The Myer Holdings Ltd (ASX: MYR) share price is soaring this morning after the company announced it expects to report a profit for the second half of the 2021 financial year, a feat it hasn't managed since 2017.
The positive news came in the form of a trading update from the retailer this morning. The update detailed some of the company's unaudited results for the financial year just been.
The Myer share price has gained 8.51% on the back of the news. Shares in the company are currently swapping hands for 51 cents apiece.
Let's take a closer look at today's news from the formerly-embattled department store operator.
Image source: Getty Images
Its a good day for Myer
The Myer share price is being boosted by the company reporting a likely green balance sheet.
The last time Myer reported a profit for the second half of any financial year was 4 years ago.
The good news comes despite the company having been hit with COVID-19 travel restrictions and lockdowns over the fourth quarter.
Its unaudited results for the last 6 months of the financial year just been saw it with net profits after tax of between $4 million and $7 million.
Additionally, Myer has brought in around $2.65 billion in sales over the 53 weeks ended 31 July. That represents a 5.5% increase on the financial year prior.
It also plans to report earnings before interest, tax depreciation, and amortisation (EBITDA) of between $174 million and $179 million. For comparison, last financial year the company reported an EBITDA of $93.5 million.
That figure has seen the company with a net profit after tax of between $47 million and $50 million.
As of 31 July, Myer could boast a bank balance of around $112 million – $104 million more than it could at the same point of 2020.
It has also bargained for an extension of its finance facility, which is now due in November next year.
Commentary from management
Myer's CEO John King commented on the results boosting the company's share price:
Our Customer First Strategy continues to gain momentum, delivering a significantly improved full year profit result, despite the ongoing COVID impacts in FY21. We will provide further detailed commentary at our audited results announcement in September.
Myer share price snapshot
It's been a good year so far for the Myer share price.
It has gained 68% since the start of 2021. It is also 152% higher than it was this time last year.
The company has a market capitalisation of around $386 million, with approximately 818 million shares outstanding.
