Myer blames balmy weather for another fall in sales
Myer has blamed the balmy autumn weather for yet another fall in sales that it said could blow a larger than expected hole in its full-year profit.
The struggling department store's total sales fell 2.7 per cent to $635 million in the 13 weeks to April 28, it said on Wednesday, while comparable sales fell 3.1 per cent.
“In February, we announced a renewed focus on product, price and customer service, which delivered encouraging results during March,” Myer's executive chairman Garry Hounsell said in a statement.
"However, as reported by a number of other retailers, the unseasonably warm start to winter has impacted sales, particularly in winter apparel, shoes and accessories, which may impact profit in the fourth quarter."
The 3 per cent fall in comparable sales is in line with the decline seen in the first half of the financial year, but is worse than in the same period last year, when sales fell 2 per cent.
Online sales continued to show strength in the third quarter, growing 49 per cent to $36 million. They now account for about 5.5 per cent of total sales.
Total sales for the year to date were down 3.4 per cent to $2.35 billion, and down 3 per cent in comparable terms, which removes the impact of opening and closing stores.
Mr Hounsell announced that Myer's incoming chief executive John King had been granted his visa and would commence work on June 4.
"John has already visited many stores, talked to team members and customers and understands the significant task at hand in turning around the business,” Mr Hounsell said.
The former boss of British department store House of Fraser replaces fellow Englishman Richard Umbers, who left in February after overseeing a series of earnings downgrades and tumbling sales.
Myer said on Wednesday it would no longer provide quarterly sales updates. The company did not explain its reasoning for the change.
More to come...