Big department store’s shock result sees shares tumble
Important problems in Myer’s problematic high -tech warehouse became heavily weighted in profitability and immersed the retailers’ stocks.
Myer made a profit of $ 36.8 million with a 30 percent decrease in 2024/25 compared to the previous year. The result was also about half of the $ 71.1 million he made two years ago.
For the first time since 2021, Myer will not pay a final dividend to shareholders after a temporary payment of 2.5 cents per share in March.
Morning shares decreased by 21.6 percent to the lowest level of three years during the morning operations on Tuesday.
The executive chair Olivia Wirth, analysts, said the store’s gross profit would be flat, even if it is not for problems in the National Distribution Center in Melbourne Suburb.
The 40,000 square meter facility had to transform Myer’s distribution network and realize up to 70 percent of online orders, but since it was opened in August 2024, it has disturbed the “Important Application Problems”.
In 2024, a worker was crushed by a stock collection robot and high -marginal stock was “stuck” in the automatic warehouse during a significant processing period.
The facility does not perform as expected and Myer costs $ 16 million in the financial year.
As a short -term solution, Myer rented a third -party logistics provider to support the fulfillment of the order during the year -end processing period.
Myer will also spend $ 32 million to overhaul the warehouse and the completion was targeted 2026/27.
After the correction is done, it is still waiting to save a cost of $ 20 million.
In a happier note, Mrs. Wirth said that Myer started to benefit from Premier Investment’s portfolio of five clothing brands – Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E.
Myer, increased by 0.5 percent compared to the previous year until July 26, reported sales of $ 3.68 billion.
In the first seven weeks of the new fiscal year, sales increased by 3.1 percent.
Wirth said there was a transition to the work in the midst of a multi -year transformation of the year.
“We are making great progress in our growth strategy,” he said.
“We will continue to work for our plans to increase growth and build what we believe will be the most powerful retail platform in Australia.”
Myer ended with a net cash of $ 168.1 million with an increase of $ 54.3 million from the end of 2023/24.
However, the legal result was still red with a net loss of $ 211.2 million.
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