What Happened to Myer’s Share Price?
Myer is currently trading 9.3% lower today at $1.39 per share.
The department store has had a challenging year, during which its share price has lost 44%. In fact, it’s been a challenging five years with the stock down 66% since listing on the ASX in November 2009.
Why Are MYR Shares Lower?
The stock fell today after Myer reported that first half profit was 23% lower than a year ago, well below analysts’ expectations. It also warned that its full year profit was also expected to be disappointing.
The poor result was due to a highly competitive environment, stagnant sales growth and higher costs. New CEO Richard Umbers said that the existing business strategy didn’t respond to the changing retail environment and that the retailer is losing relevance with customers.
What now for Myer Holdings Ltd?
Umbers is optimistic that the department store can transform and reconnect with its customers. If he’s right, there may be some hope left for the stock.
Shareholders can expect an interim dividend of cents per share, fully franked, on May 7.
for The Daily Reckoning Australia