Myer's full-year profit slips

Retailer flags challenging year ahead on weaker economic outlook, consumer confidence, takes full ownership of sass bide.

Myer Holdings (MYR) recorded a slight decline in full-year profit, as a lack of consumer confidence weighed on the retail space.

In the 52 weeks to July 27, Myer posted a net profit of $127.21 million, an 8.7% decline on the previous year's $139.37 million but in line with consensus analyst forecasts.

In the same period total sales revenue was $3.145 billion, a 0.8% increase on the $3.119 billion recorded in the previous year.

The group will pay a fully-franked final dividend of eight cents, to be paid on November 14 to shareholders on the register at September 30.

Myer chief executive officer Bernie Brookes said the year ahead will be one of great transition for the retailer, as it absorbs the impact of refurbishments to three major stores (Adelaide, Indooroopilly and Miranda) and confronts   increased operating costs.

Mr Brookes said these costs include one-off costs relating to investment in Myer's omni-channel capability and store network optimisation initiatives.

"These will predominantly impact the first half, resulting in a material difference in the company’s performance between the first half and second half compared to fiscal 2013, with the trend improving moving into fiscal 2015."

Myer takes full ownership of sass bide

Separately, Myer announced it will take 100% ownership of fashion label sass bide.

Mr Brookes said the brand had achieved double-digit sales and profit growth in fiscal 2013.

"Since Myer acquired a 65 percent stake in the business in February 2011, sass & bide has delivered a consistently strong performance, growing sales by 45% and profit by 112% over the period," he said.

Myer said the purchase price is estimated at approximately $30 million and will be funded through existing facilities and cash flow.

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