Myer records near $500m loss
MYER has sunk to a near $500 million loss as it battles falling sales and writes down the value of its brand.
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MYER has sunk to a near $500 million loss as it battles falling sales and writes down the value of its brand.
But the department store chain has signed a new deal with its lenders on $400 million in loans, extending the payment terms to 2021 and giving it more breathing room around the conditions.
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Investors have worried over the past year that the dramatic slide in Myer’s share price and earnings could see it breach certain loan conditions.
Myer this morning reported a net loss of $486 million for the year to July 28.
The result was a turnaround from the slim $11.9 profit million it eked out the year before and came as it was hit with $541.2 million in restricting costs and writedowns to the value of its brand.
Shares in the department store — whose board has come under sustained fire from its biggest shareholder, retail billionaire Solomon Lew — fell by more than 5 per cent this morning.
“These results are obviously disappointing and shareholders deserve better,” new Myer chief John King said.
Underling profit — which strips out one-offs such as asset impairments — fell by more than 50 per cent to $32.5 million.
Sales fell 3.2 per cent to $3.1 billion for the year.
They were down 2.7 per cent on a like-for-like basis which strips out the impact of stores opening and closing.
Mr King, who replaced former Myer chief Richard Umbers in February, said the plan going forward was to put the customer first “in everything we do”.
“We know our customers want high quality, on trend products, at the right price, supported by great customer service,” he said.
“With this customer in mind, we are making changes to our product ranges, store layouts, and online offering and we have worked to influence how we will trade Christmas 2018.”
Originally published as Myer records near $500m loss