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					                                      Media Release
                                   For immediate release – Tuesday 24 March, 2009

                       HALF-YEAR RESULTS FOR THE PERIOD ENDED JANUARY 2009
                          32 MONTHS INTO THE 50 MONTH TURNAROUND PHASE


                          MYER TURNAROUND ON TRACK
FINANCIALS TO 24 JANUARY 2009:
    •    EARNINGS BEFORE INTEREST AND TAX UP 6.6% TO $161 MIL (TOP OF H1 FY09 GUIDANCE),
         EQUATING TO 9.15 CENTS IN THE DOLLAR, UP FROM 8.27 CENTS IN H1 FY08
    •    NET PROFIT AFTER TAX UP 5.3% TO $83 MIL
    •    SALES ABOVE EXPECTATIONS, WITH TOTAL SALES DOWN 3.7% TO $1.76 BIL, LIKE-FOR-LIKE
         STORE SALES DOWN 3.7%
    •    GAINED MARKET SHARE OVER THE 12 MONTH PERIOD IN TOUGH ECONOMIC CLIMATE WITH
         CUSTOMERS RESPONDING WELL TO INCREASED TARGETED PROMOTIONAL ACTIVITY AND
         BETTER IN-STORE EXECUTION
    •    GROSS MARGIN 52 BASIS POINTS HIGHER, CASH COST OF DOING BUSINESS 83 BASIS POINTS
         LOWER
    •    FINISHED PERIOD WITH $224 MIL CASH AND CLEAN INVENTORY POSITION
    •    NET DEBT STEADY AT $652 MIL, DOWN FROM $979 MIL AT ACQUISITION (EQUAL TO 2.2 TIMES
         ROLLING 12 MONTH EBITDA) WITH NO REPAYMENTS DUE UNTIL JUNE 2012
    •    BASIC EARNINGS PER SHARE OF 18.2 CENTS, UP FROM 17.6 CENTS IN H1 FY08
Note: All previous period numbers have been normalised to eliminate the impact of the sale and lease back of Melbourne property

TURNAROUND PHASE INITIATIVES:
     •   101 BUSINESS IMPROVEMENT PROJECTS EFFECTIVELY COMPLETE
    •    FURTHER GROWTH AND IMPROVEMENTS TO MYER ONE LOYALTY PROGRAM WITH MORE THAN
         2.6 MIL MEMBERS, ACCOUNTING FOR OVER 60% OF SALES (UP FROM 43% AT ACQUISITION)
     •   NEW POINT-OF-SALE AND CLOSED-CIRCUIT TV SYSTEMS PLANNED FOR FULL DELIVERY
         BEFORE THE END OF TURNAROUND PHASE (WITHIN 16 MONTHS)
     •   COMPLETED REFURBISHMENT OF FLAGSHIP SYDNEY STORE TO INTERNATIONAL CLASS
         STANDARD
     •   COMPLETED REFURBISHMENTS OF DONCASTER AND GEELONG WITH CASTLE HILL AND
         BLACKTOWN COMMENCED
     •   FLAGSHIP MELBOURNE STORE AND NEW DOCKLANDS SUPPORT CENTRE TO BE
         PROGRESSIVELY DELIVERED OVER NEXT 16 MONTHS

GROWTH PHASE PREPARATION:
    •    NINE NEW LEASES SIGNED OVER THE LAST 12 MONTHS TO TAKE CHAIN FROM 65 TO 74
         STORES WITH FURTHER SIX LEASES UNDER NEGOTIATION
    •    NEW STORE AT TOP RYDE IN NSW UNDER CONSTRUCTION

OUTLOOK:
     •   TOUGH RETAIL MARKET CONDITIONS EXPECTED TO CONTINUE THROUGHOUT YEAR, FY09
         PROFIT LIKELY TO BE SIMILAR TO FY08 (GUIDANCE MAINTAINED)
     •   ON TRACK TO DELIVER FULL YEAR EBIT OF 7 CENTS IN DOLLAR BY JULY 2010 (END OF
         TURNAROUND PHASE AND BEGINNING OF GROWTH PHASE) – GUIDANCE MAINTAINED
                                                             Page 1 of 10
                                                   Myer Pty Limited. ABN 83 004 143 239
Bernie Brookes, Chief Executive Officer said:

“The work undertaken in the first 34 months of the 50 month Turnaround Phase has given us a more
flexible platform to manage the business in a difficult economic environment and we are pleased with our
sales performance against this backdrop. Our strong cost control, variabilised cost base, quicker
responses and the cemented changes in buying and ranging, combined with improved store execution
and targeted advertising, have enabled us to stay ahead of the curve and deliver increased profits,
despite a fall in sales.”

Bill Wavish, Executive Chairman said:

"Bernie and I have a strong point of view from our previous experience in retailing that balance sheet
control is as important as profit control in a ‘double loop’. In times such as this, such an approach pays
even greater dividends. Net debt has fallen from $979 million at acquisition to $652 million at this half-
year. Inventory is clean and down from $535 million at acquisition to $354 million, and $224 million cash
on deposit affords comfort and flexibility.”

Bernie Brookes added:

“We continue to improve our brand architecture and refine our brand mix to reflect the needs of our
customers. Last season we introduced over 20 new leading Australian and international designers and
our exclusive to Myer brands like Hi There by Karen Walker and Wayne by Wayne Cooper are
performing well. We are introducing Australian first concept shops for Ben Sherman, along with brands
such as Armani Jeans and international icon Vivienne Westwood.

“Our MYER one customer loyalty program now has over 2.6 million members with an expanded range of
benefits being introduced including travel offers, wine club, VIP tickets to Myer events and more
selective offers, gifts and vouchers. The loyalty program provides us with a fantastic platform to market
directly to customers and target their specific needs.

“Customers have responded very well to the relaunch of our Sydney flagship store which has been
refurbished to an international class standard. The store boasts the best cosmetics hall in the country
with installations including Mecca Cosmetica, Bobbi Brown, Elemis, Chanel Colour Studio and the first
Benefit Brow Bar in Australia.”




                                               – Page 2 of 10 –
                                        Myer Pty Limited. ABN 83 004 143 239
Summary Financials

Profit and Loss
                                               H1 FY09               H1 FY08        % Change
                                                 $m                    $m
Total Sales                                      1,762                 1,829          (3.7%)
 - Wholesale                                     1,541                 1,632
 - Concession                                     221                   197
Operating Gross Profit                            715                   732           (2.4%)
Operating Gross Profit/Sales                    40.57%                40.05%
Cash Cost of Doing Business                      (520)                 (555)          (6.3%)
Cash Cost of Doing Business/Sales               29.50%                30.33%
EBITDA                                            195                     178         +9.6%
Depreciation                                      (34)                    (27)
EBIT                                              161                   151           +6.6%
EBIT/Sales                                       9.15%                 8.27%
Interest                                          (43)                  (37)
Net Profit Before Tax                             118                     114         +3.1%
Tax                                               (35)                    (35)
Net Profit After Tax                               83                     79          +5.3%

Balance Sheet
                                               H1 FY09               H1 FY08
                                                $m                      $m
Inventory                                        354                       366
Other Assets                                     158                       138
Less Creditors                                  (504)                     (476)
Less Other Liabilities                          (274)                     (239)
Net Trading Investment                          (267)                     (211)
Property                                          29                        29
Fixed Assets                                     337                       247
Tangible Funds Employed                           99                        65
Intangibles                                      900                       869
Total Funds Employed                             999                       934

Debt                                             628                       623
Less Cash                                       (224)                     (226)
Convertible Equity Note                          247                       246
Net Debt                                         652                       643
Equity                                           347                       291
Total Investment                                 999                       934

Other Statistics and Financial Ratios
                                                H1 FY09                H1 FY08            Covenant
Basic Earnings Per Share                          18.2c                  17.6c
Diluted Earnings Per Share                        17.6c                  16.8c
Shares on issue                                  457.7m                 452.7m
Capital Expenditure                               $57m                   $41m
Return on Total Funds Employed¹                  23.0%                  22.5%
Return on Equity¹                                30.9%                  29.6%
Senior Interest Cover¹                            6.63x                  7.48x         more than 3.15x
Senior Debt to EBITDA ratio¹                      1.89x                  1.98x         less than 3.70x
Debt Service Ratio¹                               1.78x                  3.31x         more than 1.00x
¹ Calculated on rolling 12-month basis
H1FY08 normalised to eliminate impact of the sale of Melbourne property
                                                    – Page 3 of 10 –
                                             Myer Pty Limited. ABN 83 004 143 239
OVERVIEW

In June 2006 Myer embarked on a 50 month turnaround in the business, which involves an all
encompassing re-engineering of our store operations, buying, IT and supply chain. Myer is today 34
months into the 50 month Turnaround Phase and underpinning these endeavours have been
demonstrable advancements in our financial performance including profitability, cash flow, return on
investment, and in particular our EBIT to sales margin.

SALES AND MARKET CONDITIONS

In H1 FY09 we continued the operational and financial improvements whilst “seeding” the early works to
move toward our Growth Phase beyond July 2010.

The half-year was characterised by weak consumer sentiment and a downward spiral in equity markets.
Lower interest rates on mortgages, some relief in petrol prices and the December stimulus package, did
not alleviate the decline in consumer spending patterns, particularly in the discretionary areas.

Cosmetics, womenswear and accessories were strong, benefiting from our large and growing range of
Australian and international brands and designers. Homeware and furniture categories did not perform
as well, reflecting a consumer willing to delay larger discretionary and luxury purchases.

As consumer sentiment deteriorated, Myer’s strategy was to increase targeted promotional sales,
improve store appearance and shift advertising to price points, which was rewarded with an improved
second quarter. Sales declined 3.7% to $1.762 billion in the first half-year, with a drop of 4.8% in quarter
one and 2.8% in quarter two as our strategy encouraged Christmas and Stocktake sales spending, aided
to a degree by the Government stimulus. The business also benefited from an improved in-stock position
and better in-store execution.

Like-for-like sales declined 3.7%, after taking into consideration four new stores and the refurbishment of
our Geelong, Doncaster and flagship stores in Melbourne and Sydney.

Sales in Queensland, Western Australia and New South Wales were resilient with Victoria being much
tougher. Specific stores in lower socio economic catchments continue to underperform the average.

GROSS MARGIN

The gross margin improved from 40.05% in H1 FY08 to 40.57%. The 52 basis point improvement was
delivered as a result of better markdown control, improvements in buying and better supply terms which
more than offset the change in mix towards concessions.

COSTS AND EFFICIENCY

Despite the challenging revenue environment, the cash cost of doing business as a percentage of sales
fell to 29.50% in H1 FY09, down from 30.33% in H1 FY08 and 35.93% at acquisition. The 83 basis point
reduction in costs for the period was a result of a wide range of initiatives including more efficient labour
management, reduced operating costs and efficiency gains resulting from improvements in our supply
chain, information technology and buying.

In anticipation of the downturn, we took action in the early part of last year to tighten our costs. Early
planning enabled us to reduce some headcount through natural attrition and as such we have avoided
large-scale redundancies. However, the severity of the downturn has regrettably necessitated making
some 100 people redundant, representing less than 1% of the workforce, at a cost of $2.5 million after
tax. This cost is incorporated in this result.

Myer’s newly built supply chain is world class on most benchmarking measures and there continue to be
opportunities to make improvements to deliver greater efficiencies. We are benefiting from shorter


                                              – Page 4 of 10 –
                                       Myer Pty Limited. ABN 83 004 143 239
transit lead times out of China, which are down from 42 days at acquisition to less than 24 days. We are
also achieving significant improvements in our in-stock position.

Solid progress has been made in a number of initiatives aimed at driving greater efficiency across our
buying practices. In collaboration with our suppliers, we have continued to focus on the delivery of floor
ready merchandise and we have commenced work on a source-based security tagging process.

We continue to invest in information technology to underpin our drive for improved efficiency. MyMerch,
our new merchandising system, is now embedded in the business. We are seeing benefits through
improved stock allocation to stores based on criteria including sales rate, demographic, better stock
tracking, forecasting and climatic traiting.

Work on replacing the 24 year old point-of-sale system is ongoing and due to be delivered by the end of
the Turnaround Phase. We have commenced the rollout of our Closed Circuit Television (CCTV)
system and are seeing positive results in the stores where it has been activated. As shrinkage tends to
increase at times of less economic growth these enhancements are timely.

Our “Store of the Future” program, which is designed to significantly enhance efficiency in stores, was
started last year. This program will streamline store back-office functions, improve store fit-out and
design, and allocate space to reflect customer needs and new technologies.

The 101 Business Improvement Projects, initiated at the start of the Turnaround Phase, are now
effectively complete.

With the primary objective of the Turnaround Phase being to improve efficiency and reduce costs, the
majority of gains have now been delivered. Rigorous cost management remains a high priority and we
will continue to align our resources with the trading environment.

PROFIT

                           EBIT                                                                EBIT % to Sales
                                               $161m                                                                       9.15%
                                  $151m
                                                                                                             8.27%
                   $114m                                                                       6.36%


     $58m                                                                        3.40%




    H1 FY06       H1 FY07       H1 FY08       H1 FY09                          H1 FY06       H1 FY07        H1 FY08       H1 FY09
Note:
1. EBIT % to sales is always higher in the first half of the year than in the full year because of the December peak trading period
2. All previous period numbers normalised to eliminate impact of the sale and lease back of Melbourne property


EBIT increased 6.6% to $161 million, due to the continued improvement in our return on sales that
increased to 9.15 cents in the dollar, up from 8.27 cents in the dollar in H1 FY08.

Interest costs increased from $37 million in H1 FY08 to $43 million. Interest rates on 75% of our bank
debt are fixed at an average rate of 6.7% until 2012 as part of the acquisition funding agreement. As
such we do not anticipate significant reductions to our average interest rate to result from recent
reductions in the base rate until 2012, although reducing net debt will benefit our interest cost.

Net profit before tax increased 3.1% to $118 million. Net profit after tax increased 5.3% to $83 million.




                                                              – Page 5 of 10 –
                                                     Myer Pty Limited. ABN 83 004 143 239
BALANCE SHEET, CASHFLOW, CAPITAL EXPENDITURE AND FINANCIAL METRICS

Whilst tight inventory is always a high priority, it is ever more critical during an economic downturn. We
finished the half-year with inventory of $354 million, down from $366 million in January 2008. Our ability
to manage inventory at these levels reflects a cautious approach to buying, increased flexibility in our
new supply chain and a very successful clearance period. The tight control has resulted in a strong
position on aged stock.

Capital expenditure in the first half of the year was $57 million, up from $41 million in H1 FY08 and
significantly higher than the level under previous ownership which averaged $34 million in the first half
for the three years prior to acquisition. During the Turnaround Phase our capital expenditure program is
funding investment in IT, a new Point-of-Sale system, brand presentation, refurbishments, a new support
centre in the Docklands and new stores. Our capital investment program, coupled with the Turnaround
Phase initiatives designed to deliver permanent positive change, will position the business strongly for
the Growth Phase.

Net debt increased slightly to $652 million from $643 million in January 2008, following a significant
reduction from $979 million at acquisition. All banking covenants are comfortably met and no debt
repayments are due for 3 ½ years. We have $224 million cash on deposit and a $250 million committed
revolving credit line was unused at the half-year end.

As profitability and cashflow have improved, Myer’s financial health measures and banking covenants
are increasingly comfortable. The Senior Debt to EBITDA ratio improved to 1.89 times in H1 FY09 from
1.98 times at H1 FY08. The lower Debt Service ratio of 1.78 times reflects the higher level of capital
expenditure during the first half-year but remains comfortable, and this is likely to remain the case over
the next two years as the company continues to undertake significant capital investment. With net debt
now at $652 million this gives a rolling annualised EBITDA to Net Debt Cover of a comfortable 2.2 times.

Given the strong cash position, $250 million in unused working capital facilities and comfortable debt
covenants, we see no reason at this stage to slow down our capital expenditure program. However, we
do have flexibility built into our plans should we decide to make adjustments in the future.

Return on Total Funds Employed has increased slightly to 23.0%, a satisfactory outcome given the
current difficult trading conditions and the investments that continue to be made.

NEW BRANDS, SUPPLIERS AND STORE MERCHANDISING

We continue to develop our brand architecture and hierarchy, and refine our brand mix to meet the
needs of our growing customer base. Our customers have responded well to the substantial
improvements we have made to our range of Australian and international designers. During the
spring/summer season of 2008 we introduced over 20 new leading Australian and international
designers across our portfolio of womenswear, menswear, cosmetics and childrenswear.

Most recently, we have added six leading international womenswear brands: Vera Wang Lavender,
Christian Lacroix, Balmain, Temperley London, Karen Millen and Calvin Klein Collection. We have also
introduced Elemis skin care and no!no! hair removal technology to our exclusive range of leading
cosmetics brands which includes Mecca Cosmetica.

We have further expanded our menswear offer with the introduction of Ben Sherman and Wayne by
Wayne Cooper. Our first Ben Sherman concept stores opened in February and we are rolling out
another 22 stores across Australia. We have also extended our Mossimo range in our youth offer and
are in the process of rolling out Mossimo store fit-outs to 12 stores nationally.

Myer has become one of the first Australian retailers to introduce plus-size fashion for a younger
demographic. Myer’s three new plus-size contemporary brands – Mink, Monroe and Flirt – are offering
women aged 16-34 a contemporary range of leading fashion designs and have been well received by
our customers.

                                             – Page 6 of 10 –
                                      Myer Pty Limited. ABN 83 004 143 239
We have seen an improved performance from Myer exclusive brands including Hi There by Karen
Walker and Basque in womenswear and Cozi in swimwear. We added another exclusive brand to our
homeware range with the introduction of Kylie bed linen.

We continue to roll out store-within-store concepts to provide our customers with a unique shopping
experience. We introduced the exciting Nepresso coffee concept to our Perth City store and in
partnership with Kodak, we are rolling out ‘Kodak at Myer’ concept stores to enable customers to print
photos in-store. We have introduced Basque shops to many stores, which complement improvements
made in the fashionability of the Basque range. Following the success of the initial in-store
WeightWatchers Clinic and Wellness Centres, we are rolling these out to at least eight stores by the
middle of the year.

MARKETING

The MYER one customer loyalty program continues to grow steadily with the total number of members
now in excess of 2.6 million representing some 60% of sales, up from 1.1 million members at acquisition
representing 43% of sales. MYER one remains the cornerstone of our marketing activity and is a key
enabler for better targeting our product offering to meet the evolving needs of our customers. An
expanded range of MYER one benefits will be rolled out to members over the coming months including:
travel offers, wine club, VIP tickets to Myer events, and more discounts, gifts and vouchers. We
introduced our first MYER one lounge for gold and silver customers into our newly refurbished Sydney
flagship and Doncaster stores. In addition, we have established top MYER one customer lists at each of
our stores. These lists enable store managers to directly engage with and reward our most loyal
customers with invitations to local events and in-store activities such as complimentary cosmetic
treatments and valet parking creating a unique and personalised shopping experience. We have
recently launched the first ever MYER one Aussie Rules Pick The Winners Competition where
participating members have the chance to win up to $100,000 in cash and prizes.

The Myer Visa and Myer store card have continued to grow with the number of cardholders increasing to
over 200,000. Myer Visa Card was recently ranked number one reward credit card in Australia by
Cannex.

We have continued to see benefits from the long-term association between Myer fashion and Australia’s
thoroughbred racing industry. Over the past six months, we have further expanded our interest in racing
and now have ‘Myer Fashions on the Field’ competitions in 23 local racing clubs around the country. We
currently have in place long-term sponsorship agreements with the Victorian Racing Club and Melbourne
Cup, Sydney Turf Club and the Golden Slipper, as well as a five-year contract with Rebecca Twigley,
Myer’s Racing Ambassador.

Our long-term partnership with Vision Australia’s Carols by Candlelight continued again in 2008, while
our Myer Christmas parades were extended to a further three major Australian cities, as well as the
expansion of in-store Santa attractions. This was the first year we have been a major partner of the
L’Oréal Melbourne Fashion Festival, which last week featured many of Australia’s established and up
and coming designers.

This season’s new winter fashion launch has taken fashion back to our customers. Through a series of
in-store fashion shows and events our customers have come face-to-face with Myer brand ambassador,
Jennifer Hawkins, and the new season of fashion from our world class range of leading Australian and
international designers.

We have continued to expand our use of in-store theatre, designed to attract increased customer traffic
and media interest. Most recently, we received an overwhelming response to the performance of leading
artist and style icon, Kylie Minogue, in our Myer Sydney store, as well as Gabriella Cilmi’s appearance
as part of a broader initiative to provide entertainment to customers lining up for our Myer Melbourne
Boxing Day sale. Leading cosmetics designer, Poppy King, also gave in-store appearances in our
flagship Melbourne and Sydney stores.

                                             – Page 7 of 10 –
                                      Myer Pty Limited. ABN 83 004 143 239
During H1 FY09, over $1 million has been invested in more than 70 local marketing projects in
communities around Australia. This represents activity undertaken by all stores across the country,
ranging from the Westmead Children's Hospital Teddy Bear's Picnic to the Brisbane Tennis International.

PROJECT BULLSEYE

In anticipation of a challenging trading environment following the peak trading period, Myer launched an
innovative marketing campaign – Project Bullseye. The campaign is the first of its kind in Australia,
which centres on strong collaboration between Myer, its suppliers and media partners, and will result in a
doubling of normal media expenditure during February, March and April. The initiative aims to drive
traffic to stores during a time that is traditionally one of the quietest retail trading periods of the year.

The expanded advertising campaign has been achieved with the support of our media partners and our
suppliers, incorporating reduced advertising rates, assisted funding from suppliers and a commitment by
Myer to purchase increased merchandise. Participating suppliers recorded stronger than forecast
February sales. Along with increased print, radio and TV advertising, the three-month campaign also
includes specific point-of-sale initiatives, pop-up in-store fashion parades with increased appearances by
Myer ambassador, Jennifer Hawkins, and a direct mail-out to MYER one loyalty program members.
Campaign initiatives are being marketed to customers under the campaign name – ‘It’s My Choice’.

NEW STORES AND STORE REFURBISHMENT PROGRAM

We remain committed to our store expansion program, which will see the Myer chain of stores grow from
60 stores at acquisition to 80. We currently have 65 stores and construction of our new store at Top
Ryde in NSW has commenced. This follows the opening of four new stores in 2008, which are trading in
line with expectations. During FY08 we signed nine leases for new stores. We are experiencing several
landlord delays and others could arise as a result of issues facing the property sector. As such we have
built flexibility into our planning.

We continue to make good progress in our refurbishment program, with our Geelong, Doncaster and
Sydney store refurbishments completed during the period. This program reflects our long-term focus and
aims to reinforce the Myer brand proposition, while at the same time supporting future sales growth.

The refurbishment of our Myer Sydney store to international class standard was completed in time for
Christmas. The store boasts the best cosmetics floor in the country with new cosmetics installations
including Mecca Cosmetica, Bobbi Brown, Elemis, Chanel Colour studio and the first Benefit Brow Bar in
Australia. The store relaunch generated an overwhelming response from customers, with Myer Sydney
delivering the strongest store performance during the peak trading period. Improvements in our supply
chain enabled us to reduce storage space significantly, and increase retail space by 10%, taking the
store to 33,000 square metres of trading space.

The major rebuild of Myer Melbourne is progressing with phased delivery of the store due to commence
before Christmas 2009. Disruption to the business was effectively minimised over the Christmas and
stock take period with a dedicated team in place to manage customer flows. Work has recently begun
on the refurbishment of our stores in Castle Hill and Blacktown.

Myer’s new support office in Melbourne’s Docklands remains on track to be completed later this year,
with plans to move into these premises in early 2010. The first five floors of the new building are
structurally complete.

PEOPLE AND CULTURE

We have continued to invest in people development and succession planning processes to build the
talent pool and support the business through the Growth Phase. Our 2008 Graduate and Store
Management Development Programs concluded in December, with all 80 participants successfully


                                              – Page 8 of 10 –
                                       Myer Pty Limited. ABN 83 004 143 239
completing the course work and placed into permanent Myer roles. Our 2009 programs have
commenced with a first half intake of 10 graduates and 48 store management trainees participating.

Ensuring the safety of our customers and team is a key priority for our business and we continue to drive
the safety message throughout our organisation. Safety is now firmly embedded as a key performance
measure for management and is a key focus at every level of the business.

Staff attraction and retention remains a core objective for the business. In January, the Myer Equity
Incentive Plan offer was expanded to include over 350 managers. This initiative plays an important part
in aligning the contributions made by our employees with the long-term success of our business and
their reward.

A more flexible and better-targeted rostering system has enabled the business to achieve greater
alignment between staff hours and customer shopping patterns. This has increased our capacity to
provide improved customer service, while at the same time achieving greater workplace flexibility and
efficiencies, ultimately delivering significant cost reduction over the period. Reorganisation of a number
of the support office functions has also led to reduced costs and enhanced operational efficiency.

We have completed the first phase of our ‘Awesome Service’ training initiative, aimed at embedding a
permanent positive attitudinal change to our culture. This involved more than 15,000 team members
participating in training sessions around the country.

Our expansion of the ‘Myer For Me’ staff benefits program has been well received by our team, with a
broad range of benefits continuing to be rolled out.

COMMUNITY

In a rapid response to Victoria’s Black Saturday bushfire tragedy, together with our team, our customers
and our suppliers, Myer has successfully raised over $1.75 million for those affected via ‘The Myer
Bushfire Appeal’. In addition to the amount raised through team member, customer and supplier
donations, the Myer Management Board pledged $500,000 to the appeal with a further $250,000 to
match specific staff donation and fundraising efforts. All funds raised are provided to The Salvation Army
and the majority of funds raised by the Appeal have already been distributed to those most in need.

Myer plays an important role in the celebration of Christmas for many Australians. The Myer Spirit of
Christmas compact disc was this year published in support of The Salvation Army raising over $160,000
for the cause.

Our trial of an in-store breast cancer screening clinic in our Parramatta store has been successful and
we now have plans to roll out the clinics to a further three stores in NSW over the course of the year.

The Myer History of Fashion book was recently launched, following the success of the History of Myer
book last year, reflecting Myer’s long-term involvement with and dedication to the fashion industry.

OUTLOOK

The first half of FY09 saw sales budgeted to fall 5%, but ultimately fell 3.7%. The outlook for the balance
of FY09 is not dissimilar to the first half and we are planning for a slight further deterioration in sales to
be down 5%. To date in H2 FY09, sales have been down around 2½ %.

The groundwork laid in the first 34 months of the 50 month Turnaround Phase since acquisition in June
2006 has allowed us to manage the business more flexibly in a difficult economic environment. Improved
staff training, up skilled management, a new supply chain, new merchandise IT system, more focused
marketing, better in-store presentation, more focused and effective promotional activity, better inventory
and cash flow management, and improved relationships with our suppliers, have all played their part.



                                               – Page 9 of 10 –
                                        Myer Pty Limited. ABN 83 004 143 239
In most areas we have variablised costs and a conservative approach to planning and forecasting has
seen us stay ahead of the curve. We believe that it is necessary to be alert to negative or positive
changes in the market and to react to them quickly, rather than rely on firm predictions in what is proving
to be a volatile market.

We confirm previous guidance, anticipating that FY09 profits are likely to be similar to FY08,
demonstrating the relative resilience of Myer’s business model to the current challenging market
conditions. We remain on track to deliver full year EBIT of 7 cents in the dollar at the end of the
Turnaround Phase in July 2010 (up from 1.8 cents at acquisition), as previously advised.

                                                    <ends>

For further information;
Mitch Catlin, Myer Communications, 0438 101 540 or mitch.catlin@myer.com.au
Kerstin Wahlqvist, Myer Communications, 0438 101 499 or kerstin.wahlqvist@myer.com.au




                                             – Page 10 of 10 –
                                       Myer Pty Limited. ABN 83 004 143 239

				
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Description: Media Release Shopping for Cosmetics0