Myer Q3 Sales Down 3%, New CEO To Start June 4th
UPDATE – Shares in Myer have soared 15%, as investors respond positively to the better-than-expected quarterly update.
Myer has post a 3.1% drop in Q3 sales, with the department store giant beating several analysts’ expectations. The news follows the visa approval of new CEO, John King, who is scheduled to commence on June 4th.
As a shock to many, Myer has also announced it’s terminating quarterly sales updates from the new financial year.
Total sales for the quarter slipped 2.7% to $635.3 million, whilst like-for-like sales dived 3.1%.
For the thirteen weeks to April 28th, total year to date sales dropped 3.4% to $2.35 million, with comparable sales slipping 3%.
By contrast, Q3 online sales soared 49.4% to $35.9 million. Year to date online sales jumped 49% to $141.1 million.
The numbers mark Myer’s six straight quarter of negative sales growth, and follows its recent $476 million record loss.
Myer has also warned Q4 profitability may be hampered by the comparatively warm start to winter.
New Myer CEO, John King, is known for leading the “successful transformation” of UK-based House of Fraser from 2006, culminating in a $480 million sale to Chinese conglomerate Sanpower in 2014.
King has lived in the United States for the last three years, working as a consultant to local retailers and start-ups.
Myer Executive Chairman, Gary Hounsell, affirms King has received a “full mandate” from the Board to “deliver an improvement in financial performance”.
Hounsell asserts King has already visited many stores, “talked with team members and customers”, and understands the “significant task” associated with turning around the business.