Myer has told investors that it expects a net profit of between $69 million and $73 million, lower than it previously predicted but still representing between 15 and 21 per cent growth compared to 2022.
The news comes amid growing cost of living pressures and successive interest rate rises that have hit Australian workers and families hard with reduced discretionary spending at retailers.
Myer reported that its online sales had also returned to growth — though only predicting a 3.2 per cent lift in sales — the first time since the pandemic.
In the ASX statement, Myer said its second-half sales growth had slowed to 0.4 per cent compared to the some period last year despite the growth it saw in the first half of this financial year.
“Myer’s Customer First Plan has continued to deliver both positive sales growth and positive profit growth in FY23, despite the prevailing macroeconomic headwinds that have buffeted the retail sector throughout the second half,” said soon-to-retire CEO John King.
“We continue to tightly manage costs, inventory and cash to ensure we have a strong balance sheet as we begin FY24 where we expect the ongoing uncertainty around the macroeconomic environment to persist.”
Currently, WPP-owned agency EssenceMediacom holds Myer’s creative account, picking it up after the Essence and Mediacom merger earlier this year. Jaywing, meanwhile won Myer’s account for Search, Content and Digital PR in March. Clemenger BBDO holds its creative account.
