Myer to pay first dividend in four years as online trading soars

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Myer will pay a dividend of 1.5 cents a share, its first in four years, as it posts rising sales but falling net profits.

In the six-month period ending Jan. 29, 2022, Myer’s net income fell 24.7% to $32.3 million. This despite sales jumping 8.5% to $1.52 billion.

Net profit, adjusted for JobKeeper grants received during the same period in 2020, is actually up 55.2%.

Net cash jumped $16 million to $217 million.

Shares of Myer jumped 13% this morning to a two-month high of $0.465.

“The half-year results we announced today demonstrate the strength and resilience of the business, providing continued momentum for future growth,” commented CEO John King.

“The combination of our online platform and our store network worked well to meet the challenges faced during the period, including the disruption caused by the government-mandated lockdowns until mid-October, the emergence of Omicron in late December and the mitigation of major supply chain disruptions and staff availability in early 2022.”

“Myer will pay a dividend for the first time in four years,” King continued, “demonstrating our confidence in the momentum being built as we enter the second half, with a return to sales growth over the past first five weeks of the second half with trade up 15.2% and a strong platform for future initiatives that have yet to be delivered under the customer-first plan.”

Online sales over the same five-week period, King SKUs increased by 48.6%, which bodes well for the retailer.

Myer’s online business recorded exceptional growth, with sales up 47.5% to $424.1 million for the six-month period.

Online sales now account for 27.9% of all Myer sales, an impressive growth, albeit somewhat driven by desperation as store closures crippled the brick-and-mortar business.

“Our online business has nearly quadrupled in the past four years and is now one of the largest online retail companies in the country,” King said.

“In key categories, our growth far exceeds that of our competitors, whether they are multi-channel retailers or online pure players. »

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