Myer Stocks Crash After Poor Stocktake Sale Results
Myer stocks have hit an all time low at 58 cents this morning after it released its first half results announcing poor sales during its stocktake sale.
Currently, on the ASX the share price is at $0.582, down 9.76 per cent.
Total sales for the first half of the financial year were down 3.6 per cent to $1.7bn. However, online sales were up 48.9 per cent.
Richard Umbers, CEO at Myer says these results are a reflection of the industry.
“The significant deterioration in trading reflects ongoing challenging retail conditions with widespread industry discounting, a subdued performance of Myer’s stocktake sale and a continued shift in consumer behaviour characterised by reduced foot traffic and an increase in online shopping,” he says.
The company expects its first half NPAT to be between $37m and $41m pre implementation costs and individually significant items.
Two weeks before Christmas the company issued a profit warning to investors, the second of the year which resulted in its price share dropping 12 percent.
Only a couple of days ago Solomon Lew from Premier Investments, Myer’s biggest investor was in talks of setting up an extraordinary general meeting for the Myer board with rumours saying he would oust the current members with his own directors.