Myer Shares Surge over 15% to near 52-Week High after Record-Breaking Half-Year results

Key Highlights:

• Myer Holdings Limited (ASX: MYR) announced its 1HFY23 results.
• Myer's CEO, John King, expressed his satisfaction with the strong results, highlighting the record-breaking first-half sales performance.
• The Myer share price jump indicates that the company's half-year results exceeded expectations.

Myer Holdings Ltd (ASX: MYR) shares soared by 15.445% to AU$1.102 (AEDT 3:04 PM) and is trading near its 52-week high on Thursday following the release of its half-year results. The results showed that the Company’s profits doubled. Also, MYR declared a special dividend.

Operating Performance:

• Myer's total sales for the six months ended 28 January surged by 24.2% to AU$1,884.9 million compared to the previous corresponding period, driven by strong in-store sales growth, which more than offset a decline in online sales.
•  The department store operating gross profit margin increased by 17.4% to AU$683.2 million, but its cost of doing business (CODB) improved meaningfully to 23.5% of total sales.
• Myer's net profit after tax surged by 101.4% to AU$65 million.
• The company's cash balance increased by AU$50 million to AU$267 million, enabling the Myer board to reward shareholders with an interim dividend of AU4 cents per share and a special dividend of 4 cents per share.

Myer's CEO, John King, expressed his satisfaction with the strong results, highlighting the record-breaking first-half sales performance, significant profitability improvement, and a balance sheet that continues to provide a strong foundation for future growth. King said that the outcome reaffirmed the company's belief that the Customer First Plan is the right strategy, delivering robust outcomes for the business and shareholders.

He also stated that Myer's Omni channel offering remains strong, with continued investment in MYER one, one of the country's most efficient retail loyalty programs, and a demonstration of the company's capacity to capitalize on customers returning to stores and CBD locations through targeted store space optimization, a stronger merchandise offer, key refurbishments, and improved customer service.

In addition, King noted that the fully franked interim dividend and additional special dividend demonstrated confidence in the momentum being built as they move through FY23, with department store sales growth in the eight weeks post-Christmas up by 16.1% over the corresponding period in the prior year, delivering sales momentum despite tightening economic conditions.

Investor Sentiment:

The Myer share price jump indicates that the company's half-year results exceeded expectations, and investors are optimistic about the department store's future prospects. Myer's focus on enhancing the customer experience and strengthening its online and in-store offerings seems to have paid off, as evidenced by the surge in sales and profitability.

Myer's strong financial position, combined with its ongoing investments in loyalty programs, Omni channel offerings, and customer service improvements, bodes well for the company's future growth potential. As a result, Myer's stock is expected to remain in high demand, with many investors looking forward to the company's upcoming full-year results.

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