Retail giant Myer Holdings Ltd admitted of a slight sales slip in the first quarter of fiscal 2011 but it reported that the company's net profit is projected to rise by up to 10 percent for the rest of 2010/11.

For the three months leading to the end of October, Myer said that its overall sales dipped by 1.53 percent to $706 million in the period, following the retailer's sales growth of 5.21 percent in the prior corresponding period.

Excluding sales from Myer stores being refurbished, the October quarter sales plunged by 1.74 percent but Myers chief executive Bernie Brookes maintained that the company achieved a credible sales figures considering the uncertain economic environment and worries on surging interest rates.

Brookes pointed to the fact that Myers still emerged in a competitive position despite the challenging condition it had to face as price deflation hounded the retail industry.

Myer said that retail store located in Queensland and Victoria performed remarkably for the company as accessories, apparel and home furniture contributed the bulk of the overall sales, effectively cushioning the impact of weak turnovers from the entertainment category as LCD televisions suffered price deflation in the October quarter.

Brookes said that they are expecting a bit of a rough sailing in the last quarter as consumers remain wary of spending due to the November cash rate lift but the coming online of new stores ins Sydney and Gold Coast should deliver considerable benefits.

Also, the refurbished Myer Melbourne is expected to contribute significant sales figures in the new quarter, on the back of the seven floors that currently service the needs of the area's shoppers.

Myer noted though that the Myer Melbourne reconstruction effort and its Point of Sale system upgrade cost the company some $10 million in the first half of the current financial year but it still expects net profit after tax to grow by at least 10 percent, barring any new problems in trading conditions.

The retail giant is also upbeat on the scheduled Christmas opening of its Canberra City, Charlestown and Garden City stores, which Myer said should bring about significant boosts on its overall sales for the remaining part of FY2011.