Myer has discovered the cost of listing on Australian Stock Exchange in
the release of its first half results.
Net profit fell to $21.3 million for the 26 weeks to January 23, from $83.2 million in the prior corresponding period, Melbourne-based Myer said in a statement on Thursday.
Profit before the costs of the initial public offer were taken into account jumped 38 per cent to $114.8 million, as the company succeeded in lowering the costs of doing business.
Revenue rose two per cent to $1.8 billion.
Earnings before interest and tax (EBIT) grew 11.9 per cent to $181 million, in line with the company's guidance.
Myer's EBIT margin climbed 90 basis points to 10.05 per cent, compared with 9.15 per cent during the previous corresponding period.
Proforma earnings per share reached 20.6 cents, compared to the prospectus forecast of 18.8 cents.
Myer's board declared an interim dividend of 10.5 cents per share, fully franked and payable on May 6 for investors registered with the company by March 25.
This is at the upper end of the forecast interim dividend detailed in Myer's initial public offering prospectus which stated the interim dividend would fall between 10.3 cents and 10.6 cents per share.
Myer's sales for the half year were up two per cent to $1.797 billion, and its underlying operating gross profit margin climbed 34 basis points to 39.63 per cent.
Myer said it was cautious about the outlook for the second half of 2009/10 because the company would be cycling the second federal government stimulus package. This meant its second half results would be compared with the second half 2008/09, during which consumers spent government stimulus payments on retail items.
Consumers remained "wary" amid the expectation of further interest rate rises, but the retailer still expects sales growth in the second half to be in the range of zero to two per cent, and full year sales growth to be between one and two per cent.
Myer said it was confident of delivering its prospectus forecast EBIT of $261 million, which would be 10.7 per cent higher than the previous corresponding period.
It finished its first half with $144 million in cash and a clean inventory position, the company said.
CEO Bernie Brookes said the company had a strong balance sheet from which to drive top line growth as it approached the end of its turnaround phase.
"We will achieve this through the opening of 15 new stores (by 2014), ongoing store investment and refurbishments, our new point-of-sale system and ongoing improvements to in-store execution," Brooks said.
Myer said its turnaround initiatives were on track and would present considerable upside to earnings.
Its Myer One loyalty membership program now had 3.4 million members and contributed 66 per cent of sales.
Two new stores, in Top Ryde, in Sydney, and Robina, in south-east Queensland, were scheduled to open in July 2010 and October 2010 respectively.
The rebuilding of Myer's flagship Melbourne city store was scheduled for a phased re-opening by Christmas 2010. A staged handover of floors would begin mid-year.
Myer's shares listed at $4.10 on November 2, 2009, and have traded below that level since then, before closing at $3.47 on Wednesday.
In very early trading on Thursday, after the release of its first half results, Myer shares rose four cents, or 1.4 per cent, to $3.51.