- Shares in retail giant Myer (MYR) have plummeted on news of an 800 per cent drop in profit, dragging it into the red
- The department store, once an ASX 200-lister, tabled a $172.4 million loss in FY20 — a significant slide from FY19’s $24.5 million statutory profit
- Total sales also slumped 16 per cent, even though the retailer’s online sales recorded a 61 per cent spike to $422.5 million for the year
- The losses can largely be attributed to the COVID-19 pandemic, which decimated the Australian retail space and kept shoppers at home and online
- In midday action, Myer’s shares are down nearly 15 per cent, trading for 21.8 cents per share
Shares in retail giant Myer (MYR) have plummeted on news of an 800 per cent drop in profit, dragging it into the red.
The department store, once an ASX 200-lister, tabled a $172.4 million loss in FY20 — a significant slide from FY19’s $24.5 million statutory profit.
Total sales also slumped 16 per cent, even though the retailer’s online sales recorded a 61 per cent spike to $422.5 million for the year.
Myer’s earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 41 per cent to $93.5 million — well down from FY19’s $160.1 million.
The losses can primarily be attributed to the COVID-19 pandemic, which largely decimated the Australian brick-and-mortar retail space and kept shoppers at home and online.
Over most of April and May, all 60 of Myer’s physical stores were shut down, meaning roughly 10,000 employees were stood down.
While Myer’s physical stores have now begun to reopen in most states, the department store giant says it expects foot traffic to remain low for the foreseeable future.
Speaking to the results today, Myer Chief Executive John King said the decision to close stores and stand down staff was one of the hardest decisions the retailer had faced across 120 years of operation.
“When the COVID-19 pandemic first hit, as a board and executive team, we acted to prioritise the health and wellbeing of our customers, team members, and the broader communities in which we operate,” he stated.
“I take this opportunity to thank all customers and team members for their support and loyalty to Myer during the past few months. We remain focused on executing the Customer First Plan, however, we have adapted it to respond to COVID-19 by accelerating, re-sequencing and expanding various initiatives,” John continued.
Following the results, Myer has opted to not pay a final dividend for FY20.
In midday action, Myer’s shares are down nearly 15 per cent, trading for 21.8 cents per share at 12:50 pm AEST.