Myer shareholders will receive their first dividend in four years after first-half sales improved.
The department store chain on Thursday declared first-half sales rose by eight per cent to $1.5 billion for the 26 weeks to January 29.
Net profit was down 55 per cent to $32.3 million, although the retailer said the statutory number was not the best measure of profitability.
Myer received a JobKeeper wage subsidy benefit of $22 million in the prior corresponding period, due to COVID-19.
If this benefit is removed, the most recent first-half profit is up 55 per cent.
Chief Executive Officer John King said the sales improvement came despite the challenges of the Omicron coronavirus wave from December and earlier lockdowns.
Sales momentum has continued at the start of the second half of the financial year.
Sales have improved by 15 per cent, across stores and online, in the first five weeks.
The company is reducing costs by downsizing and closing stores. It has reduced floor space across Australia by almost 10 per cent since its 2018 financial year.
Rapid growth in online sales has made Myer less dependent on its stores.
First-half online sales grew by 47 per cent to $424 million.
The company claims its online growth is outpacing most retailers, including online-only ones.
While there are growing staff and transport costs in fulfilling online orders, Myer plans to open a national distribution centre in its 2023 financial year to ease these pressures.
Shareholders will receive a fully franked dividend of 1.5 cents per share.
The boss of the biggest Myer shareholder, Solomon Lew of retail group Premier Investments, has in recent years called for the board to improve performance or resign.
In 2020, Myer shares were at an all-time low of 8.3 cents per share.
Last year, the company returned to full-year profit and had a net profit after tax of $46.4 million
Myer shares on the ASX were higher by 27 per cent to 52 cents at 1543 AEDT.
