Myer's turnaround is well under way but the department store chain admits it still has a long way to go.
The retailer has tightened its full year profit outlook after posting strong sales growth in the first half of its 2016 financial year.
Sales rose 1.8 per cent to $1.79 billion in the six months to January 23. However net profit dropped four per cent to $59.7 million.
The result impressed investors who drove Myer's share price up more than 12 per cent.
Chief executive Richard Umbers says the results showed the "new Myer" strategy, a five-year $600 million transformation plan announced in September, was working.
"After six months of effort, the key indicators are moving in the right direction but at the same time we recognise just how far we've got to go," Mr Umbers said.
"It has been an intense six months and there is much more to come."
Mr Umbers said changes at Myer's Melbourne and Sydney CBD stores included multi-lingual helpers at the top of escalators.
Comparable store sales rose 3.3 per cent for the half, while comparable store sales at Myer's 12 flagship and premium stores in NSW and Victoria jumped 7.1 per cent.
However, this is still not as good as department store rival David Jones's comparable stores growth of 9.7 per cent in the six months to December.
Key to Myer's transformation strategy is an overhaul of its fashion brands.
It has culled myriad brands and reduced its private labels to make room for more than 500 new brands it deems as "wanted", including Seed, Nine West, French Connection, Topshop Topman, Mimco and Jack & Jones.
Women's fashion brand Veronika Maine and men's clothing label Industrie will be introduced later this year.
Myer will ramp up its store refurbishments and brand overhaul in the second half compared to the first half, however the retailer has revised down full year capital expenditure to be in the range of $70 million to $80 million compared to its previous forecast of $100 million to $120 million.
CMC Markets chief market strategist Michael McCarthy said the fact Myer has been able to sustain sales growth throughout the half year has pleased investors.
"The fact that we have seen the turnaround sustained is a real positive," he said.
"Not only has the share price climbed but the short positions are also getting really rattled."
Myer was one of the most heavily shorted stocks on the share market last year, where investors bet its share price to fall.
Its shares closed 14 cents higher, or 12.73 per cent, at $1.24.
BETTER SALES IMPROVES MYER'S OUTLOOK:
* Half year profit down 4pct to $59.7m
* Revenue up 1.8pct to $1.79b
* Fully franked interim dividend of 2.0 cents a share, down from 7.0 cents
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