Myer predicts return to profits at the expense of Solomon Lew’s campaign

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Department Store Myer said it plans to post second-half profit for the first time since 2017 in a surprisingly dynamic business update that could put Solomon Lew in cruel efforts to get rid of the board of directors of the society.

Myer told investors Thursday morning that his second-half net profit after tax would be between $ 4 million and $ 7 million for the half-year, although that doesn’t take into account individual one-time costs or other significant items.

Myer CEO John King said the better-than-expected result was achieved despite lockdowns and store closures.

This is the first time Myer has reported a positive second-half NPAT since fiscal 2017, which means the company is expected to post annual profit of between $ 47 million and $ 50 million, beating analysts’ expectations by around 33. millions of dollars.

Half-year sales grew nearly 40% during the half-year, increasing the company’s annual sales by 5.5% to $ 2.6 billion, a marked improvement over the prior year when sales had fallen by 15.8%. Online, a fast-growing part of Myer’s business, grew 27.7 percent to 20.3 percent of the company’s total sales.

However, net cash for the year declined significantly, with Myer reporting $ 112 million from $ 201.1 million in its half-year result in March as the company was hit by store closures, travel restrictions and travel restrictions.

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“Our customer-centric strategy continues to gain momentum, delivering significantly improved bottom line for the full year, despite the continued impacts of COVID in fiscal 21,” said the director General John King.

Myer’s better-than-expected annual performance could cast cold water on the aspirations of Premier Investments and its chairman Solomon Lew, who have asked the company to inform investors about its business performance.

Mr Lew pushed for the resignation of Myer’s board due to the company’s history of underperformance and acquired a larger stake in the company earlier this year in a bid to replenish the board directors with two of its own directors and a series of new independent directors.


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