Australia's Myer Holdings dives on annual profit slump, dividend cut

Myer Holdings

20/09/2024 02:38

Sept 20 (Reuters) - Shares of Myer Holdings  MYR.AX 
tanked as much as 12% on Friday to hit their lowest levels in
more than a month, after the Australian mid-cap retailer posted
a drop in annual profit and also halved its dividend payout. 
    The departmental store chain reported a net profit after tax
of A$52.6 million ($35.78 million) for the fiscal year 2024,
down 26% from the previous corresponding period, due to closure
of stores and cost pressures.  
    Customers have increasingly cut down on discretionary
spending, as savings take a hit due to inflationary pressures
and an uncertain macroeconomic outlook.
    "Today's results reflect the challenging macroeconomic
environment for Australian retailers," Myer Executive Chair
Olivia Wirth said.    
    The company said in a statement that the underperformance of
its wholly owned fashion label sass & bide, and Marcs and David
Lawrence brands, accounted for half the decline in its fiscal
profit.
    Myer also cut its final dividend to 0.5 Australian cents
apiece, down from 1 AU cents declared in fiscal year 2023. 
    The company's stock was trading at A$0.770 apiece, as of
0100 GMT, underperforming a 0.5% rise in the benchmark index
 .AXJO . More than 3 million shares changed hands, about twice
the 30-day average.    
    "We are laser-focused on improving our profitability,
performance and shareholder returns," Mirth said. 
    The company said the due diligence process for a potential
combination with Premier Investments'  PMV.AX  apparel brand
business is underway, and will look to postpone its investor
strategy session, which was initially scheduled for October.  
                  
    ($1 = 1.4699 Australian dollars)
    
    
    

 (Reporting by Archishma Iyer in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Archishma.Iyer@thomsonreuters.com;))