Myer’s share price hit an all-time low after analysts downgrade

Myer’s share price hit an all-time low after analysts downgrade

Myer investors have punished the department store and pushed its share price to an all-time low after analysts downgraded the stock following its weak full-year results.  The company on Thursday revealed its full-year profit slumped 80 per cent to $11.9 million in 2017, driven by a $38.8 million writedown to the value of fashion brand sass & bide and a $6.8 million loss from its investment in Topshop’s local franchisee, which went into administration in May.

 

 

“The last couple of years show how challenging it is to achieve the sort of sales metrics they originally discussed in the New Myer strategy, so that requires a rethink,” Mr Saligari said.  “The company has probably done a good job at accelerating its cost-out and store closures, but it really needs to come up with an answer to the sales growth question.”  The company will hold a strategy day on November 1 to update the market on how it plans to compete in a retail marketplace that is facing disruption from international competitors like H&M and Zara and is bracing for the arrival of Amazon.  Myer shares have fallen 49 per cent since January, after it issued a shock earnings downgrade in July.  On Thursday Myer reported an underlying net profit of $67.9 million – in the middle of its revised guidance of between $66 million and $70 million.

 

Article Source – www.smh.com.au

Patrick Hatch