Australia's Myer Full Year Net Profit Down 13%

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By Esther Tanquintic-Misa | September 13, 2012 2:20 PM EST

Australia's largest department store chain, Myer Holdings Ltd, reported that its full year net profit sank 12.7 per cent to $139.365 million compared from a year ago as it continues to sail through tough conditions in the retailing environment. 

With the weakened volume in sales, Myer declined to offer any full-year guidance throughout fiscal 2013, saying it expects the current scenario to continue.

Total sales in the 12 months to June 30 reached $3.119 billion, a1.3 per cent fall from a year ago.

Faced with concerns about Australia's as well as the global economy, coupled with the rising cost of living expenses, Australians have become more prudent in their spending habits. The continued rise of the Australian high dollar also became a factor for the consumers to spend more time doing in online shopping than in actual physical stores, not to mention its convenience.

Myer said it would pay a final dividend of 9 Australian cents per share, down on last year's 11.5 cents.

"A significant reduction in our overall markdowns was achieved in fiscal year 2012, benefiting the gross profit result," Myer said. "While there was price deflation during the year associated with being more globally competitive, this was offset by the success of our markdown reduction program."

Its second-half net profit for the year fell 3.3 per cent, which was actually smaller compared to the 5.6 per cent fall forecast of five analysts surveyed by Reuters News.

In June, Myer shares plummeted to $1.69, its lowest level since getting listed on the Australian Securities Exchange in 2009.

Myer shares fell 0.8 per cent yesterday to $1.845.

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