Myer H1 sales surge following Apparel Brand integration

Myer Holdings (ASX:MYR) announced a leap in its half-year financial results for the period ended Jan. 24, bolstered by the integration of Myer Apparel Brands.

The retail giant reported total sales of $2.28 billion, a sharp 24.5% increase compared to the previous year.

The growth was underpinned by a record-breaking Black Friday performance and strong demand across the womenswear, home, and concessions categories.

On a pro forma basis, total sales rose by 2.1%, demonstrating the group's increasing relevance in a competitive market.

The financial highlights reveal an operating gross profit of $886 million, up 35.1%, while underlying EBIT climbed 10.5% to $112.8 million.

Despite the costs associated with strategic initiatives and the inclusion of new apparel brands, Myer managed its cost of doing business effectively at 27.9%, staying within its targeted fiscal parameters.

Underlying net profit after tax reached $51.7 million, representing a 21.7% increase, although pro forma figures reflected the impact of heavy investment in long-term growth priorities.

The group maintains a formidable balance sheet with a net cash position of $287 million, supported by an impressive cash conversion rate of 134%.

The board has declared a fully franked interim dividend of 1.5 cents per share, reflecting a payout ratio of 50.1%.