The Myer Holdings Ltd (ASX: MYR) share price is getting more attention than a Boxing Day sale today after releasing a trading update.
At the time of writing, shares in the Australian department store group are trading 5.9% higher to 90 cents. The sizeable gain has set yet another 52-week high for the company's shares, continuing a blazing 6-month stint for the Myer share price.
Let's peer into the latest update to understand what all the fuss is about.
Clawing its way back to record numbers
After a long stretch of declining sales (pictured below), the 122-year-old Aussie retail chain has posted its best sales on record for the first five months of the financial year.
According to the update, Myer increased its sales by 24.8% for the five months ending 31 December 2022 compared to the prior corresponding period. Investors are cheering about the solid performance, pushing the Myer share price higher.
The substantial increase was buoyed by store sales, which surged 37.9%. Meanwhile, online sales scaled back 9.4% compared to the comparative period. Pleasingly, sales surpassed pre-COVID levels in the first half of FY19 by 14.3%.
Though, it was pointed out that the prior period being compared was impacted by store closures — possibly assisting with larger gains year over year.
Notably, total sales were up 8.7% for the six weeks leading up to Christmas compared to last year.
What about profits?
Record sales are always good to see, but profits are what really counts. Fortunately, Myer is expecting net profit after tax (NPAT) of between $61 million and $66 million in the first half of FY23. The commendable result would reflect an astounding increase between 89% and 104%.
Exact figures will be presented in early March as the company's interim reporting period finishes on 28 January.
Despite the stellar expected results, Myer CEO John King noted their continued vigilance, stating:
As with most retailers, we remain cautious on the macroeconomic environment for the remainder of the calendar year but are equally confident in the continuing momentum we have within the Customer First Plan and a range of initiatives we are executing.
Myer share price snapshot
The Myer share price has wiped the floor with the S&P/ASX 200 Index (ASX: XJO) during the past 12 months. Where the benchmark has returned a mediocre 4.6%, Myer has delivered a mouthwatering 143% gain before dividends.
Myer currently holds a market capitalisation of approximately $735 million.
