The Myer Holdings Ltd (ASX: MYR) share price is racing higher following the release of the company's FY22 trading update.
In early afternoon trade, the Australian department store group's shares are surging 22.5% to an intraday high of 49 cents.
Let's take a closer look at how the company performed for the 2022 financial year.
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Myer continues to build on sales growth momentum
Investors are bidding up the Myer share price after digesting the company's latest scorecard.
In its announcement, Myer provided a trading update and results guidance for the 52 weeks ending 30 July 2022 (FY22). Here are some of the key highlights:
- Total sales for the second half of FY22 are up between 16.5% and 17.3% compared to H2 FY21;
- FY22 total sales are up between 12.3% and 12.7% ($2,985 million and $2,995 million) compared to $2,658.3 million for FY21;
- FY22 group online sales are up between 32.5% and 34.4% ($715 million and $725 million).
Subsequently, the above numbers are expected to flow into a stronger financial performance for the company. As such, the group is forecasting the following:
- H2 FY22 net profit after tax (NPAT) for the 26 weeks to 30 July 2022 of between $23 million and $28 million. This reflects an increase between 160% and 217% compared to H2 FY21 NPAT of $8.8 million for the 27 weeks to 31 July 2021;
- FY22 NPAT of between $55 million and $60 million, an improvement of between 86% and 103% if JobKeeper is excluded from the prior year.
The company noted it's projecting to finish FY22 in a positive net cash position of more than $155 million, up from $112 million in FY21.
Department store stock on hand is currently 9.6% higher than this time last year due to management's response to global supply chain delays.
Furthermore, clearance inventory is being well managed at 6.2% of current department store stock on hand.
Myer anticipates its FY22 final results will be released sometime in September, following board approval and completion of audit.
Management commentary
Myer CEO John King touched on the company's results, saying:
Execution of the Customer First Plan continues to deliver positive outcomes for the business with all categories achieving sales growth over FY21, despite more trading days lost due to COVID this year.
The momentum in the second half in terms of sales growth both in-store and online, profitability and strengthening of our balance sheet places us well as we go into the new financial year.
Myer share price snapshot
Adding to its impressive gains, the Myer share price has risen 49% in the past month which will offer some relief to shareholders.
This comes after its shares hit a 52-week low of 29.5 cents on 17 June on the back of weakened investor sentiment on the ASX.
Based on the current share price, Myer commands a market capitalisation of around $404 million.
