More than happy to own Myer at average $3.84 today.
Iconic brand like Myer simply just trades on higher earning multiples, than maybe it should.
Regardless forward 13.5 (remember at bottom of cycle)is too low for Myer, with growth and clear evidence, of top management turnaround. David Jones share price all but torched $6 from $2 in March 2009....high retail component on register - means somewhat of a squeeze for Fund Manager Index allocations. Same PE for Myer as David Jones whould see a shareprice of $5.
--------------------------- Myer has 65 stores (increasing to 80)...David Jones has about 40 stores.
Myer has $1.5 billion extra (or 2/3 more) revenue turnover of David Jones....yet David Jones is a bigger company (after today) by $500 million or 20%, compared to Myer. SEE BELOW
David jones FY09 profit up 6.3% 24th September 2009
DEPARTMENT store owner David Jones Ltd has posted a 6.3 per cent rise in annual profit on the back of stronger revenue, and says sales for the first eight weeks of fiscal 2010 are better than expected.
Sales revenue for the year was $1.99 billion, down 5.4 per cent on the previous corresponding period.
Earnings before interest and tax (EBIT) was $225.7 million, up six per cent on 2008.
Mr McInnes said the next cycle in the economy would be an upturn and David Jones was well positioned to take advantage of the improved environment.
------------------------------------- Myer FY09 profit up 14.8%September 11, 2009 Ads by Google Learn to Trade CFDs 5 Easy Steps to CFD Trading.Free Practice Account Included. GFT
www.GFT.com.au
Myer Pty Ltd increased full-year profit 14.8 per cent and says earnings before interest and tax in fiscal 2010 will grow more than 10 per cent as sales increase in its refurbished department stores.
Myer also said in a statement it would commence pre-registration for an initial public offering (IPO) on Friday, allowing Myer One members and employees to pre-register their interest in receiving a prospectus.
The company said an IPO prospectus may be lodged with the Australian Securities and Investments Commission (ASIC) on or around September 28.
Net profit rose $109 million for the 12 months to July 25 compared to $95 million in the prior corresponding period.
Revenue declined 1.8 per cent to $3.261 billion, from $3.32 billion in 2008.
Chief executive Bernie Brookes said sales performance continued to improve quarter by quarter during FY09, with second half like-for-like sales up 0.4 per cent and fourth quarter like-for-like sales up 3.7 per cent.
"These results, against the backdrop of a very tough retail trading environment, are testament to the work done during the turnaround phase to build a flexible, efficient and sustainable platform for the future," Mr Brookes said in the statement.
Myer said it had continued to gain department store market share in tough economic climate with customers responding well to promotional offers, in-store presentation, stock availability, local marketing and the second federal budget stimulus package.
Earnings before interest and tax (EBIT) was up 10.6 per cent to $236 million.
EBIT growth of 10 per cent, as forecast, would take the figure to about $260 million in fiscal 2010.
Myer also forecast sales growth of three per cent, which would take the fiscal 2010 figure to about $3.36 billion.
Myer said it was optimistic about the company in the current financial year and beyond and said there were signs that consumer confidence is improving.
Sales in first six weeks trading was above the three per cent forecast for the full year.
Myer said its improved sales performance was being driven by a number of factors including improved performance in the refurbished stores, better store presentation, better pricing and customer service. The company said it was too early to call a sustained recovery in consumer sentiment, but there were signs that consumer confidence was improving.
Myer said its transformed retail platform and store roll out positioned the business well for growth in the medium-term.
Mr Brookes said Myer was heading into the final stages of its 50-month plan to turn around the business.
"While we are delighted to have achieved one of our key turnaround phase targets to lift our return on sales from around 2 cents in the dollar to over 7 cents, we acknowledge that we still have some way to go to reach international best practice," Mr Brookes said.
"Many of the benefits of our improved retail platform are yet to be realised and I am confident that we now have the foundations in place to start delivering top line growth in fiscal 2010 and beyond."
Myer said its cash cost of doing business was 126 basis points lower.
It said it had finished the period with $185 million cash and a low level of aged inventory.
Net debt declined to $694 million as of July 25, down from $733 million the year before, with no repayments due until June 2012.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)