Department giant Myer has reported a 37 per cent drop in first half profit, weighed down by restructuring cost, redundancies and the exit of Apple products and Country Road Group brands.
Profit fell to $24.4 million in the six months to January 25 as sales dropped 3.8 per cent to $1.6 billion.
The company’s womenswear segment was particularly disappointing during the period, while Myer also booked $15.2 million in costs associated with brand exits, clearance floor closures, and redundancy payouts after the company cut 35 head office staff in January.
Stripping these costs out, net profit climbed 0.4 per cent to a still-underwhelming $41.5 million.
The company’s dividend continues to be suspended.
Chief executive John King said comparable store sales were up 0.4 per cent excluding Apple and Country Road Group sales.
Refurbishments have commenced at the Cairns and Karrinyup stores underpinned by significant landlord contributions.
During the second half, a major upgrade of the Sydney City ground floor and atrium will begin, and work will also commence at the company’s Belconnen store in Canberra to reduce space, followed by a refurbishment.
Upgrades are also planned for Myer’s Albury and Ballarat stores.
MYER’S DISAPPOINTING FIRST HALF
* Total sales down 3.8pct to $1.6bn
* Net profit down 37pct to $24.4
* Dividend remains suspended