Department stores operator Myer Holdings has expressed confidence on Monday that it is en route to a previously established full year earnings guidance of $3.33 billion amidst anticipated sales slow downs as the company enters a much challenging fourth quarter.

Myer said that it has gained up to two percent of growth this year and is projecting to achieve earnings before interest and tax (EBIT) growth of 10.7 percent to $261 million, as chief executive Bernie Brooke is upbeat that the company would stay the course to its guidance notwithstanding the residual impacts of the federal stimulus programs and steady interest rate hikes.

Mr Brookes is adamant that Myer would realise the $261 million target and in the event that sales should decline significantly in the last few coming months, it is almost certain that "we will still achieve that EBIT guidance."

He said that his assumptions are based on figures which still excluded the heavy profit-generating months of Christmas, New Year and stocktake sales which he described as not exactly big dollar contributors for the retail industry.

The retail giant has reported that its third quarter sales amounted to $671 million, an improvement of 0.3 percent from the same period last year though a bit lower than previously projected.

Myer's total sales, however, peaked up to $2.47 billion for the last nine months and ending by the last week of April, but Credit Suisse retail analyst Grant Saligari cautioned that the figures were apparently cloaking the fact that the company's numerous outlets were in the process of building and consolidation period.

He cited that Myer is set to fully open its Melbourne Burke Street store by Christmas this year as more renovation projects were being lined up for most of its stores and further investments were being planned on its problematic consumer electronic business.

The company said that Myer Melbourne would slowly re-open its doors commencing on July 2010 and the buildings' nine floors should be fully operational by Christmas time this year as Myer is expecting that sales should achieve pre-rebuild levels around that time.

Myer is realistic though that EBIT increase would not come until the company would have achieved its pre-rebuild sales of $300 million, thanks to the late completion compensation arrangements with its builders.

The company revealed that cost-efficient programs are being instituted in all stores and the installation of CCTV should be wrapped up by July 2010, which is part of a comprehensive plan to slash revenue leakages.

Amidst a much weaker retail market, Myer shares declined by 12 cents or 3.86 percent to $299 while bitter rival David Jones Ltd shares posted a drop of 17 cents or 3.84 percent to $4.26 when it released its third quarter updates Wednesday last week.