Myer share price charges higher on half-year results and major board changes

This department store operator reported a sharp profit decline but investors don't mind.

| More on:
Photo of two women shopping.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Myer Holdings Ltd (ASX: MYR) share price is pushing higher on Thursday.

At the time of writing, the department store operator's shares are up 5.5% to 84 cents.

This follows the release of the company's half-year results.

Myer share price higher despite profit decline

  • Total sales down 3% to $1,829.1 million
  • Cost of doing business up 1.6% to $449.4 million
  • EBITDA down 10.4% to $215.7 million
  • Net profit after tax down 19.9% to $52 million
  • Fully franked interim dividend of 3 cents per share

What happened during the half?

For the six months ended 27 January, Myer reported a 3% decline in sales to $1,829.1 million.

This was driven largely by store closures, which offset a 0.1% increase in comparable sales growth and a 2% lift in online sales to $390.1 million. The latter now represents 21.3% of total sales, which is up from 20.3% a year earlier.

The biggest disappointment for investors will no doubt be its profits. Myer's EBITDA was down 10.4% to $215.7 million and its net profit after tax dropped 19.9% to $52 million.

This led to the company's board cutting its fully franked interim dividend by 25% to 3 cents per share.

Management commentary

Myer's CEO, John King, was pleased with the half given the macroeconomic challenges. He said:

The Customer First Plan continues to deliver for Myer despite the macro economic conditions. We were able to achieve a strong comparable sales outcome, cycling our best ever 1st half sales on record in FY2023 and saw improvements in our market share across both stores and online.

Our underlying profit result has remained robust despite the impacts from our Brisbane Store closure and increased promotional cadence. The ramp up of our new National Distribution Centre in Q4, continued roll out of new shopping experiences and brands, tight inventory management and continued focus on newness in 2H, will help with momentum into the second half.

Board changes

It has been revealed that John King will be stepping down from the role as CEO in the coming months and incumbent chair, Ari Mervis, will exit with immediate effect.

The Myer board has appointed independent non-executive director, Olivia Wirth, as its executive chair to drive the company's next phase of growth.

Myer's executive general manager of stores, Tony Sutton, has been promoted to the new executive position of chief operating officer, reporting to Ms Wirth.

Its current independent non-executive director, Dr Gary Weiss AM, will become deputy chair and lead independent director.


During the first six weeks of the second half, department store comparable sales are up 4.9% over the corresponding period.

Outgoing CEO, John King, said:

Like all retailers, we continue to remain cautious about the macro-economic environment, however, we are encouraged with our results for the first six weeks of 2H, and have a strong program of deliverables to roll out during the half as part of our Customer First Plan.

In other news, the company is looking at potentially offloading its sass & bide, Marcs, and David Lawrence businesses. It has appointed advisors to commence a strategic review.

The Myer share price remains down almost 20% over the last 12 months.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »

Agricultural ASX share price on watch represented by farmer in field looking at tablet computer.
Earnings Results

Graincorp share price lifts off as dividend is maintained and debts plunge

ASX 200 investors are bidding up the Graincorp share price today. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA share price on watch following $2.4b third quarter profit

CBA delivered another bumper profit for the three months.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Earnings Results

ANZ share price on watch amid first-half earnings beat and $2b buyback

The banking giant appears to have outperformed expectations during the half.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Earnings Results

Westpac shares charge higher on half-year earnings beat and buyback

Investors are loving this bank's half-year results release. But why?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Earnings Results

Westpac share price on watch amid results, special dividend and $1b buyback

This banking giant is rewarding its shareholders handsomely this half.

Read more »