Myer Holdings Ltd
(ASX:MYR) CEO Bernie Brookes is targeting at least $4 billion in annual turnover and growth in earnings before interest and tax of over 10% in the next four years.
The Australian Financial Review reports that Mr Brookes has revealed he plans to continue discounting heavily over the next six months to combat the lack of stimulus spending.
Mr Brookes has described the forecast as conservative and says it includes annual turnover of $30 to $35 million for each of 15 new stores to be opened.
Myer’s new Melbourne store is expected to generate about $80 million in the first year followed by 2% growth a year on top of that after it opens later this year.
The company is set to increase its 65 stores across Australia to 80 by 2014.
Mr Brookes says the department store will met its prospectus earnings before interest and tax forecast of $261 million, but any surplus funds will be channelled into discounting.
For the 12 months to July 30, 2009, Myer reported a profit of $104 million.
