Myer Q3 sales fall 2%

Myer Q3 sales fall 2%

Myer Holdings (ASX:MYR) said its Q3 sales declined 2%, due partly to price pressures at its electrical business.

The company said its sales for the quarter fell 2% year-on-year to $657 million. Like-for-like sales also fell 3.2% over the same period.

The Queensland and Victorian floods and Cyclone Yasi impacted sales for the quarter by a combined $6 million.

Myer's electrical business was again hit by price deflation, in product categories including games consoles. Excluding electrical, sales grew 0.9% from last year, but were still down 0.3% on a like-for-like basis.

But clothing and cosmetics sales were strong during the quarter, and the company entered into agreements that will increase its range of clothing brands.

Myer CEO Bernie Brookes said that though consumer spending is still depressed, “we have seen an improvement in the retail environment.”

But the company is forecasting an up to 5% decline in profit for FY11, from last year's result of $169 million.

Brookes added that Myer is progressing well with the establishment of global sourcing offices in Shanghai and Hong Kong, having now appointed the key management roles for each office.

MYR shares grew 0.32% in Wednesday's trading to $3.180.

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Tags retailfinancial resultsmyerBernie BrookesASX:MYR

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