Myer’s shares take a hit as sales growth slows to a crawl

 Myer Holdings (ASX: MYR) has forecast a marginal lift in sales for the second half in the latest sign that consumers are tightening their belts, but the department store operator is still expecting a healthy lift in net profit for the full year.

That didn’t stop investors heading for the doors as Myer’s share price slumped more than 14 per cent on the news.

In a trading update issued to the ASX this morning, Myer says total sales for the second half of FY23 were up just 0.4 per cent, reflecting a tougher retail climate.

However, despite the headwinds the company says it expects full-year sales for FY23 of $3.36 billion, up 12.5 on the previous year.

Net profit after tax is forecast to land between $69 million and $73 million, which is up between 15 and 21 per cent compared with FY22, marking a continued run of growth for the company.

The forecast result shows that most of Myer’s profits were generated in the first half, as NPAT for the second half is likely to shrink to between $4 million and $8 million as lower sales and margins combined with higher costs.

https://www.businessnewsaustralia.com/articles/myer-s-shares-hit-as-sales-growth-slows-to-a-crawl-in-the-second-half.html