Where To Now For Myer?
It’s been a rough road for Myer in recent times, which upon release of its 2015 half-year results last month issued a downgrade of its full-year profit expectations, stating it expected full-year net profit after tax of $75-80 million (excluding one-off costs), down from the $98.5 million posted in 2014.
Myer subsequently faced questions as to why it hadn’t issued the news at an earlier date. Earlier in March, Myer had announced its CEO succession and provided an update on its strategic review, however had not disclosed information about its profit expectations.
Myer subsequently stated the revised forecast was completed on March 18.
The Australian has reported that Lew has appointed Arnold Bloch Leibler managing partner Henry Lanzer to the boards of SL Nominees and Australian Retail Investments, with the move coming amid speculation Lew is planning a takover bid for Myer.
Last year, Lew played a key role in South Africa’s Woolworths Holdings takeover of David Jones, with the unlisted SL Nominees and Australian Retail Investments utilised to buy up a 9.89% stake in David Jones.
Australian Retail Investments later sold its David Jones interests to Woolworths, along with an 11.8 per cent stake in Country Road, delivering a profit of just under $200 million, The Australian reported.
The Australian has reported that Myer has been conducting regular searches of its share register for Lew, with no sign as yet that he has made a move.
Meanwhile, Fairfax Media has reported that Myer chairman Paul McClintock has three to six months to restore investor confidence in Myer and its board before facing pressure to step down, according to fund managers.
McClintock is facing pressure following the profit downgrade, however with the recent changes at the top level there is concern more changes could create instability.