Myer Holdings Ltd (ASX:MYR) has confirmed it will be doubling its direct outsourcing of fashion, homewares and merchandise from China.
The department store will spend $200 million a year by 2016 to support the manufacturing of its Myer exclusive brands, with new offices opening in Shanghai and Hong Kong.
The company’s chief executive, Bernie Brookes, told the SMH’s Business Day that inflationary pressures in China are also pushing manufacturing prices up and the cost of Myer’s stock will probably be repriced by the end of the year.
In March, Myer Holdings Ltd (ASX:MYR) posted a 5.2 per cent fall in first half earnings, and tipped that its full year result is expected to be lower.
Myer reported a net profit of $106.7 million for the six months to January 29, 2011.
