Myer Holdings says it will open a new store in Lakeside Joondalup as the department store operator reports flat third quarter sales despite a strong performance from Western Australia and South Australia.
Myer Holdings says it will open a new store in Lakeside Joondalup as the department store operator reports flat third quarter sales despite a strong performance from Western Australia and South Australia.
Total sales for the third quarter to April 24 were $671 million, up 0.3 per cent on the same time last year.
For the nine months to April 24 total sales grew by 1.4 per cent to $2.47 billion and like-for-like sales were up 0.9 per cent compared with the previous corresponding period.
"While we anticipate that trading in the fourth quarter will be challenging until the full impact of the Federal Government stimulus has passed, we reaffirm our full year guidance for sales growth," the company said in a statement on Monday.
Full year sales are excepted to increase one per cent to two per cent to between $3.29 billion and $3.33 billion, and earnings before interest and tax (EBIT) are forecast to grow 10.7 per cent to $261 million.
Myer said its home category, in particular furniture, childrenswear and menswear, had performed strongly during the third quarter and womenswear continued to perform well across the country.
The strongest performing states were WA and South Australia.
Myer chief executive Bernie Brookes said it was a pleasing result in the context of a "very challenging trading environment", which included the cycling of the federal government's stimulus payments.
Mr Brookes said Myer also had felt the effect of further interest rate rises on consumer discretionary spending.
"In anticipation of facing tough trading conditions in the third quarter, we pulled a number of levers to drive traffic and sales, including successfully utilising our MYER one loyalty program to engage our customers with relevant promotional offers," he said in a statement.
Mr Brookes said Myer's store expansion program is on track with two new stores opening during the next few months, one each in NSW and Queensland.
"We are also excited to announce today the signing of an additional store in the Lakeside Joondalup centre in the northern suburbs of Perth, which will give us a total of seven stores in Western Australia."
Myer Melbourne is on track for a floor-by-floor re-opening beginning in July 2010 with the new basement youth offer, the company said.
All nine floors were expected to be open by Christmas 2010 and Myer anticipated sales at Myer Melbourne would return to pre-rebuild levels once it is fully re-opened.
"Due to the late completion compensation arrangements that we have in place, we do not expect to see an increase in EBIT until the store achieves pre-rebuild sales of $300 million," Myer said, however.
The rollout of CCTV in all stores, which forms part of a wider strategy to reduce losses, is expected to complete by July 2010.
Myer fashion director Judy Coomber said two fashion labels had joined Myer, Australian designer Ellery and international brand Moschino.
Givenchy, Philosophy by Alberta Ferretti, and Piazza Sempione also soon would be stocked exclusively at Myer, Ms Coomber said.
