By Grant Shepherd

SYDNEY: Myer has just released its full year financial results to 25 July 2009, and despite the fact that the company is currently 39 months into its 50 month turnaround phase, the company performed exceedingly well.

According to the release issued to the ASX, Myer’s net profit after tax was up 14.8 per cent to $109 million, earnings before interest and tax was up 10.6 per cent to $236 million and net debt for the year has continued to decrease to $694 million, down from $979 million at acquisition.

The second half of FY09 saw sales increase by 0.5 per cent and for the entire Q4 FY09 sales were up 3.1 per cent. This has lead to better than expected full year sales results of $3.261 billion, which is down 1.8 per cent in FY08.

Bernie Brooks, Myer CEO, commented on the pleasing results.

“Our achievements over the course of the year are a clear demonstration of our team’s ability to do many things at once. We’ve successfully managed the business through a difficult trading environment to deliver a very pleasing set of financial and operational results, and at the same time we’ve executed an enormous amount in terms of fundamental business improvement,” he said.

“These results, against the backdrop of a very tough retail trading environment, are testament to the work done during the turnaround phase to build a flexible, efficient and sustainable platform for the future. This has enabled us to gain department store market share by adjusting our trading strategy to suit prevailing economic conditions and consumer sentiment, dialling up or down our product offer and promotional activity, to meet the needs of varying customer demographics.”

Brooks highlighted that the retailer is now heading into the final stages of its 50-month plan to turnaround the business.

“We have a world class supply chain, a vastly improved technology platform, a more flexible and tailored merchandise strategy, a well motivated and incentivised team and a strengthened product offer,” he said.

“Many of the benefits of our improved retail platform are yet to be realised and I am confident that we now have the foundations in place to start delivering top line growth in FY10 and beyond.”

It was highlighted in the report that store refurbishments in Castle Hill, Sydney City, Geelong and Doncaster have now been completed. Blacktown is set for completion before Christmas.

In addition to this, the signing of three new store leases is imminent, which will take the total number of leases signed for new stores to 12, with a further three under negotiation.

New stores in Robina (QLD) and Top Ryde (NSW) are also currently under construction, and are progressing well.

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