Myer Holdings Limited · ASX:MYR
Myer — H1 2025 Earnings Presentation
33 slides from Myer's earnings presentation, Mar 19, 2025
Slide 1: Half Year 2025 Results
19 March 2025 HALF YEAR 2025 RESULTS MYER GROUP STRATEGIC RESET IN CHALLENGING MACROECONOMIC ENVIRONMENT OVERVIEW • CHALLENGING MACROECONOMIC ENVIRONMENT AND MYER GROUP RESET • MYER GROUP GROWTH PLAN WELL UNDER WAY AFTER STRATEGIC REVIEW • GROUP COMPARABLE SALES1, up 0.8% (Total Sales2 of $1.8 billi
Slide 2: 1H25 results summary
Myer Holdings Limited (ASX:MYR) reported financial results (post-AASB16) for the 26 weeks ending 25 January 2025 (1H25)6. • Total Sales2 up 0.1% to $1,830.9 million, while group comparable sales1 were up 0.8% (reflecting closure of Brisbane and Werribee stores and 10 standalone sass & bide stores fo
Slide 3: 1H25 highlights and 2H25 update
Highlights in 1H25 include: • Establishing Myer Group after completing Apparel Brands acquisition • Putting in place a new Leadership structure and capabilities aligned to strategic priorities • Strengthening the Group’s balance sheet via refinancing commitments for a $150 million debt facility with
Slide 4: Presenters
For personal use only MATT JACKMAN Chief Financial Officer OLIVIA WIRTH OLIVIA WIRTH Executive Chair Executive Chair ANDREW TAYLOR Chief Transformation Officer
Slide 5: Important Information
Important Information The information in this document is Investors and potential investors should make their own assessment Subject to law, Myer assumes no obligation to update, review or and take independent professional advice in relation to the revise any information contained in this document,
Slide 6: Agenda
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS 1H25 BUSINESS OVERVIEW For personal use only 3 2H25 TRADING UPDATE 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A APPENDICES MYER HOLDINGS LTD 3
Slide 7: 1H25 Business Overview
1H25 Business Overview The 1H25 results relate to Myer, excluding Apparel Brands. Myer Group including Apparel Brands to be reported from 2H25. GR OU P 1H25 OVERVIEW: T OT A L S A LES 1 EBIT4 ON LI NE 3 S A LES • Macro economic conditions up 0.1% vs 1H24 to up 4.8% vs 1H24 to down 14.3% to 1H25 BUSI
Slide 8: 1H25 Business Overview: What Worked Well
1H25 Business Overview What Worked Well In-store customer service MYER one tag rate Merchandise Operations satisfaction (% of total sales) • Strongest result on record for MYER • Full review of key merchandise • 1H25 Shrinkage expense down • Improved by 100 bps in 1H25 vs 1H24 one categories complet
Slide 9: 1H25 Business Overview: Challenges
1H25 Business Overview Challenges National Distribution Centre (NDC)– Automation and integration issues delay ramp up and adversely impact 1H25 performance 1H25 NDC Challenges Financial Impact in 1H25 Rectification actions + 2H25 impact Future Benefits Diagnostic review completed identified Estimate
Slide 10: Agenda: 1H25 Financial Results
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 1H25 FINANCIAL RESULTS 3 2H25 TRADING UPDATE 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A APPENDICES MYER HOLDINGS LTD 7
Slide 11: Myer 1H25 Income Statement
Myer 1H25 Income Statement $ MILLIONS 1H25 1H24 CHANGE Commentary: Total Sales1 1,831 1,829 - • Total sales1 flat on prior year reflecting mixed trading conditions, store closures and December sales adversely impacted by NDC (in Operating gross profit 656 665 (1%) particular, MEB stock trapped at ND
Slide 12: Sales and Operating Gross Profit
Sales and Operating Gross Profit 1H24 – 1H25 1H24 – 1H25 SALES BRIDGE ($M) GROSS PROFIT BRIDGE ($M) OGP margin(%) 36.4% 35.8% For personal use only 1H25 FINANCIAL RESULTS 12 29 10 4 8 7 11 665 1,829 1,831 3 3 656 1H24 Closed National Myer Exclusive Concessions 1H25 1H24 NDC impact1 Sales volume Mix
Slide 13: Cost of Doing Business
Cost of Doing Business GROUP COST1 1H24 – 1H25 STRUCTURE ($M) COST OF DOING BUSINESS 1 BRIDGE ($M) Operating Wages Operating Other Costs SSO For personal use only 1H25 FINANCIAL RESULTS 5 5 2 1.9% 9 449 458 2 458 189 198 449 1H24 NDC Impacts Employee Costs Support Office Operational Costs sass & bid
Slide 14: Operating Cash Flow
Operating Cash Flow $ MILLIONS 1H25 1H24 Commentary EBITDA 198 216 • Operating cash flow decrease of $5m reflects earnings decline, partially Add implementation costs and ISIs (17) (2) offset by disciplined working capital management For personal use only 1H25 FINANCIAL RESULTS Add non-cash adjustme
Slide 15: Balance Sheet and Inventory Position
Balance Sheet and Inventory Position $ MILLIONS 1H25 FY24 1H24 Commentary: Cash 282 176 273 • Inventory increase reflects pull forward of newness at start of winter Debt (63) (62) (61) season and Chinese New Year. Inventory ageing improved Net cash 219 114 212 • ROU Assets/Lease liabilities reflects
Slide 16: Agenda: 2H25 Trading Update
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 3 2H25 TRADING UPDATE 2H25 UPDATE 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A APPENDICES MYER HOLDINGS LTD 13
Slide 17: 2H25 Update
2H25 Update • Apparel Brands transaction completed on 26 January 2025 (Myer Group including Apparel Brands to be reported from 2H25). Myer Group sales – First 5 weeks of 2H25 • Trading conditions remain mixed with consumers continuing to be cautious. -2.6% 60 For personal use only 57 • Myer Group sa
Slide 18: Agenda: Myer Today
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 3 2H25 TRADING UPDATE MYER TODAY 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A APPENDICES MYER HOLDINGS LTD 15
Slide 19: Myer Today: Strategic Review completed
Myer Today Strategic Review completed and implementation commenced in 1H25 • Strategic Review announced on 24 June 2024 successfully completed. • Myer Group Growth Strategy developed – comprehensive plan for sustainable growth. For personal use only • Implementation of Myer Group Growth Strategy com
Slide 20: Resetting the base by fixing the basics
Myer Today Resetting the base by fixing the basics Laying the foundation for future growth – strategy implementation commenced RESETTING THE BASE – 1H25 Deliverables For personal use only ✓ Completed comprehensive strategic review. MYER TODAY ✓ Developed Myer Group Growth Strategy and commenced impl
Slide 21: Apparel Brands Combination
Myer Today Resetting the base to support future growth Apparel Brands Combination • Apparel Brands (Just Jeans, Jays Jays, Portmans, Dotti and Jacqui E) transaction completed 26 January 2025. • Transition arrangements in place – integration underway – anticipated to take 12 to 18 months. • Work has
Slide 22: New leadership structure and capabilities
Myer Today Resetting the base to support future growth New leadership structure and capabilities • A reshaped and bolstered leadership team has now been Executive Chair, Olivia Wirth set to drive the Company’s strategic priorities and position • Group Chief Financial Officer, Kathy Karabatsas For pe
Slide 23: Refinancing commitments from CBA and NAB
Myer Today Resetting the base to support future growth Refinancing commitments from CBA and NAB • On 18 March 2025, Myer accepted irrevocable and credit approved term sheets for a combined $150m debt facility with two leading Australian major banks CBA and NAB meeting the needs of the larger combine
Slide 24: Refinance of existing facilities
Myer Today Resetting the base to support future growth Refinance of existing facilities Current: New: • $65m drawn debt; and • $150m of revolving facilities 40 available as cash advance • $150m asset backed loan. 30 For personal use only and/or contingent instruments. 110 MYER TODAY Asset backed loa
Slide 25: Bringing SBMDL into Myer's private label strategy
Myer Today Resetting the base to support future growth Bringing sass & bide, Marcs and David Lawerence (SBMDL) into Myer’s private label strategy to drive cost efficiencies • SBMDL has operated as an independent business with a head SBMDL financial performance office located in Sydney For personal u
Slide 26: Agenda: Myer Tomorrow
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only MYER TOMORROW 3 2H25 TRADING UPDATE 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A MYER HOLDINGS LTD APPENDICES 23
Slide 27: Our Strategic Pillars
Myer Tomorrow Our Strategic Pillars: Driving growth + building advantage with our connected customer at the core Details to be presented by new Leadership team at Investor Day on 28 May 2025 Deliver a world class data-led MYER one and partnership ecosystem that • Grow active members REWARDING LOYALT
Slide 28: Agenda: Conclusion
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 3 2H25 TRADING UPDATE CONCLUSION 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A MYER HOLDINGS LTD APPENDICES 25
Slide 29: Conclusion
Conclusion • Total comparable sales remain flat to last year in the challenge macroeconomic environment. • Strategic review completed. For personal use only • Myer Group Growth Strategy developed – implementation commenced in 1H25. CONCLUSION • Details of the Myer Group Growth Strategy to be present
Slide 30: Agenda: Q&A
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 3 2H25 TRADING UPDATE Q&A 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A MYER HOLDINGS LTD APPENDICES 27
Slide 31: Appendices
AGENDA 1 1H25 BUSINESS OVERVIEW 2 1H25 FINANCIALS For personal use only 3 2H25 TRADING UPDATE APPENDICIES 4 MYER TODAY – RESETTING THE BASE BY FIXING THE BASICS 5 MYER TOMORROW – MYER GROUP GROWTH STRATEGY 6 CONCLUSION 7 Q&A APPENDICES MYER HOLDINGS LTD 28
Slide 32: Appendix 1: NPAT reconciliation to Statutory Accounts
Appendix 1: NPAT reconciliation to Statutory Accounts $ MILLIONS EBIT INTEREST TAX NPAT Statutory reported result 85 (42) (13) 30 For personal use only Add back: Implementation costs and individually significant items Transaction Costs 14 - (4) 10 APPENDICIES Strategic Review and implementation cost
Slide 33: Appendix 2: Income Statement – AASB impact
Appendix 2: Income Statement – AASB 16 impact 1H25 AASB 16 1H25 1H24 CHANGE $ MILLIONS (STATUTORY) IMPACT (PRE-AASB 16) (PRE-AASB 16) (PRE-AASB 16) Total Sales1 1,831 - 1,831 1,829 - Operating Gross Profit 656 - 656 665 (1%) For personal use only Cost of Doing Business2 (458) (101) (559) (553) 1% AP