The retail giant has confirmed it will close stores after a massive fall in profit.
The retail giant has confirmed it will close stores after a massive fall in profit. AAP Image/Samantha Manchee

Myer to close stores after profit falls by 80%

MYER has announced three store closures after its net profit dived 80 per cent due to weaker sales and writedowns on the value of some of its fashion labels.

The department store chain posted a net profit of just $11.9 million for the year to July 29, which was its weakest result since listing on the stock exchange in 2009.

Sales fell 1.4 per cent to $3.2 billion and comparable store sales - which strip out one off costs such as store closures - fell 0.2 per cent.

Myer announced this morning that it will not renew its leases at its Hornsby store, the Belconnen store in Canberra and the Colonnades store in Adelaide.

The Hornsby and Belconnen leases are scheduled to expire in the 2019 financial year and Colonnades in the 2020 financial year.

However, Myer chief executive Richard Umbers said the retailer was in discussions with the landlords to potentially close them sooner than those dates.

Mr Umbers also warned that the first eight weeks of trading in the 2018 financial year had been weaker than expected.

"The financial result is not where we want it to be," Mr Umbers said.

"However Myer has become a leaner, more productive and efficient retailer, better placed to compete in a rapidly changing environment."

Myer shares were 2.1 per cent higher at 73.5 cents at 11:20am AEST.

News Corp Australia

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