Full Year 2024 Myer Holdings Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Gilbert - Jarden - Analyst : Just first question for me and probably a bit of a short-term one. But just on the trading update, just how you think you're seeing that in the context of the market because a lot of the data, I suppose, in some of the other retail trading updates have suggested that trends might have improved a bit in a couple of months with tax cuts. Just how you're seeing that? And if you give us any color on how you feel you're performing at different age cohorts in terms of sort of younger versus sort of middle and mid of boomers?

Question: Ben Gilbert - Jarden - Analyst : And just second one for me. I appreciate you're not going to say anything on the Premier discussions, which makes sense. But just interested in terms of making some of your strategic review and executing on some of the things you'd like to do, presumably, any external conversations around some of these sorts of things you probably want to have wrapped up sooner rather than later because obviously it's pretty integral in terms of where you're looking. And then just in that light, how are you thinking about things like marketplaces and trying to broaden or sort of further monetize the loyalty and data capabilities you've got within the group?

Question: Mark Wade - CLSA Australia Pty Ltd - Analyst : I think there's some really clear and good signs of health in that Myer brand. You talked about the MYER one members and the tag rate, customer satisfaction. So that's all great. The question I have is, I mean, you clearly struggle with these specialty store brands, sass & bide, et cetera. If it's a sign you're not the natural owner, why double down with another 600 stores from Premier? I mean, I would have thought there's enough on your plate with just 56 big Myer stores and instead you should be giving those guys sass & bide and all firmly taking on the Premier brands as concessions only, not another 600 nightmare stores to handle.

Question: Alexander Mees - Morgans Financial Limited - Analyst : Three questions, please. Just firstly, you mentioned, Olivia, that CBD stores have not fully recovered from the pandemic. I wonder if you think that a full recovery is possible and what needs to happen to bring it about?

Question: Alexander Mees - Morgans Financial Limited - Analyst : Secondly, you mentioned that Myer has a right to win, you said, in categories such as home. I'm just wondering what it is about Myer that confers that right? And if there are any other categories we should be thinking about at the same time?

Question: Alexander Mees - Morgans Financial Limited - Analyst : Excellent. That's a segue into my last question, which is just with regard to private label and exclusive brands. I'm just wondering what role they play in attracting that younger customer into the Myer ecosystem, please? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 19, 2024 / 11:30PM, MYR.AX - Full Year 2024 Myer Holdings Ltd Earnings Call

Question: James Tracey - Blue Ocean Equities - Analyst : Could you please provide a bit more color on the gross margin differential between your own brands, third-party brands, and the concessions?

Question: James Tracey - Blue Ocean Equities - Analyst : And with regards to the strategic review and expanding gross margins, do you think there's an opportunity to increase the margins of those three categories? Or is it more about the mix -- shifting the mix towards higher margins? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 19, 2024 / 11:30PM, MYR.AX - Full Year 2024 Myer Holdings Ltd Earnings Call

Question: James Tracey - Blue Ocean Equities - Analyst : Okay. And just a final question on online and the profit margins online. Can you comment on whether that online business is similar to store margins or higher or lower?

Question: Chami Ratnapala - Bell Potter Securities - Analyst : I think, firstly, just to do a quick follow-up on the comps growth. Maybe comparing that the promo period, which had the June sort of massive promo period, which I'm sure would have assisted the fourth quarter. How are customers sort of responding outside the sales period? Or how is it tracking compared to the last quarter or August, September versus July, if you can any -- provide anything further?

Question: Chami Ratnapala - Bell Potter Securities - Analyst : Perfect. And the second thing is nice to see gross margins improving 1 percentage point. Although Myer exclusive brands as a percentage of contribution has slightly softened. What's driving the positive outperformance here?

Question: Chami Ratnapala - Bell Potter Securities - Analyst : Okay. And I think lastly, the cost base also on a pre-AASB basis looks pretty consistent and looks good. I mean, maybe if we were to think about the business, do you consider this the right cost base -- right level of the cost base for the existing business considering current demand conditions and taking into consideration the ongoing review?