Aussie retailer Myer Holdings [ASX:MYR] rose more than 20% on Tuesday after FY22 net profit after tax jumped upwards of 85%.
MYR reported that FY22 total sales were up between 12.3–12.7% to between $2.99–3.0 billion.
MYR shares are up 14% in the past 12 months, enduring some volatile trading periods.
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Myer’s FY22 trade update
Myer provided a FY22 trading update this morning.
Here are the highlights:
- ‘2H22 Total sales up between 16.5% and 17.3% compared to 2H21;
- ‘FY22 Total sales up between 12.3% and 12.7%, to between $2,985 million and $2,995 million (52 weeks), compared to $2,658.3 million for FY21 (53 weeks);
- ‘FY22 Group online sales up between 32.5% and 34.4% compared to FY21, representing approximately 24% of Total sales – to between $715 million and $725 million.’
Myer’s sales growth mirrored an improvement in the bottom line:
- ‘2H22 Net Profit After Tax (NPAT) for the 26 weeks to 30 July 2022 of between $23 million and $28 million, up between 160% and 217% compared to 2H21 NPAT4 of $8.8 million for the 27 weeks to 31 July 2021;
- ‘FY22 NPAT of between $55 million and $60 million, an increase of between 86% and 103% if JobKeeper is excluded from the prior year. FY21 results included Jobkeeper support of $22 million after tax.’
Myer expects to end FY22 with a positive net cash position of $155 million, which contrasts to $112 million at the end of FY21.
Regarding inventory management, MYR reported that department store stock on hand is 10% higher than the same time last year.
Myer said the main reason was an ‘acceleration of intake in response to global supply chain delays.’
With more stock on hand, does Myer fear inventory liquidation?
The department store said its clearance inventory ‘continues to be well managed at 6.2% of current department store stock on hand.’
John King, Myer’s CEO, commented on the positive trading update:
‘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.’
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