Q3 sales increase 2.1%.
The New Myer strategy has helped boost the department store’s sales by 2.1% to $675.5 million for Q3 or the 13 weeks ended 23 April 2016. On a comparable store basis, sales were up 3.4%.
Q3 FY2016 sales per square metre were up 5.1%, while year to date (YTD) sales per square metre were up 4.4% compared to the prior corresponding period.
“These results build on our first half performance. We believe they further demonstrate that New Myer is moving in the right direction and that our customers are responding well to the New Myer strategy,” Myer CEO and managing director Richard Umbers (pictured) said.
“The entire Myer team remains strongly focused on delivering our strategic priorities. The momentum in the execution of New Myer is continuing with the rollout of a significant number of new and expanded wanted brands and refurbished brand destinations as well as further improvements to customer service,” he explained.
Outlook
FY2016 is a transitional year for Myer in which significant investments are being made for future growth. In the second half, the department store will accelerate the rollout of New Myer initiatives leading to increased costs and capex which includes the major refurbishment at Warringah, which is due to reopen before Christmas 2016.
In a statement to the Australian Securities Exchange (ASX), the company stated, “In recent weeks, the unseasonably warm start to winter has contributed to subdued sales of winter product. The 2016 Federal election campaign occurs during a key trading period and Myer is anticipating an impact on consumer sentiment during this period but it is difficult to quantify.”
Myer continues to expect NPAT for FY2016 to be between $66 million and $72 million excluding the impact of implementation costs associated with New Myer.