Myer Sales Warning

Submitted by Share Trading on 12 March, 2010 - 00:23

Myer (MYR) has warned that sales for Australia's largest department store chain maybe flat as consumers no longer have the free government bonus handout cash to spend. The company had beaten forecasts and reported a 38 percent rise in their first half underlying profit due mainly to cost cutting and through selling higher margin private label products.

First half net profit fell 74.4 percent to $21.3 million compared to the corresponding period of the previous year mainly due to the one off costs associated with floating the company. Myer will pay out an interim dividend of 10.5 cents a share on May 6. The retailer is confident of achieveing its forecast of 11 percent growth in Earnings before interest and tax (EBIT) to $261 million. Bernie Brookes, Myer CEO has stated that "the consumer remains wary..." as there are no handouts this year and interest rates are rising. Competitor David Jones is due to report its first half results on March 17.