Myer returned to profit for fiscal 2021 despite a period in reverse due to lockdowns from COVID-19.
The Australian retail giant reported after-tax net profit of A $ 51.7 million, down from a loss of A $ 172.4 million last year, and earnings before interest, taxes, depreciation and depreciation of A $ 390 million, up almost 30% from the A $ 305 million reported. the previous year.
The company attributed the turnaround to the 28% year-over-year increase in the group’s online sales which reached AU $ 540 million in the period up to July 31, 2021. This represented 20% of total sales of the group who have rocked just over A $ 2.6 million during the year.
“Despite the rebooted nature of physical retail in FY21, combined with the continued growth in online business, we saw solid sales growth when unaffected by bottlenecks, including particular to 2H21, ”said Myer CEO John King.
“The profitable and sustained growth of our online channel has once again demonstrated the benefits of our multi-channel approach to the market and now represents 20.3% of total sales. Significant growth was achieved in the first half of fiscal 21, particularly during the four days of Black Friday. sales period before the Christmas trade peak. “
During the year, the company noted that investing in its online business remained a key priority as part of its Customer First plan, launched in fiscal 2018, when at the time online sales still exceeded A $ 209 million.
For fiscal year 21, Myer’s investment in online growth was AU $ 19 million. The company added that the capital expenditure paid was A $ 32 million, the majority of which, A $ 20 million, was spent on its online business.
Some of the specific investments Myer said it made in its online business during the year included upgrades to its technology stack to enable a seamless interface between Myer.com and its Myer One programs, improved computing capability for manage peaks in activity and the implementation of AI. technology optimized to improve product sequencing and research on its online store.
“As we have consistently said over the past three years, we have focused on profitable sales, growing e-commerce, disciplined management of costs, cash and inventory, and optimizing the space and deleveraging on our balance sheet. The successful execution of these, and many other strategic initiatives, generated solid growth across all of our key metrics in fiscal 21, “said King.