Myer shares slump 1.9% as update underwhelms
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The news: Myer's stock price fell almost 2% after an AGM update revealed declining sales in its first quarter of the new financial year, but the department store's management remains optimistic for the holiday period.
The numbers: Same store sales fell 1.9% in the first half of 1Q24 and 0.2% in the second half to round out at 0.9% lower for the period. Myer shares closed 1.9% down on Thursday to $0.505. Management was keen to remind shareholders of the group's 12.5% sales growth and $71.1 million net profit after tax in FY23, ahead of its busiest period in the lead up to Christmas.
The context: On Wednesday, Myer's largest shareholder Solomon Lew pushed the board for an update on the chain's performance, noting the upcoming losses of three key leaders, the Australian Financial Review reports. Myer chair JoAnne Stephenson is stepping down after today's annual general meeting, while CEO John King and chief financial officer Nigel Chadwick will likely depart in 2024. Lew is chair at Premier Investments, which owns 29% of Myer.
What they said: "The last seven weeks of quarter one saw an improving trend; but we remain cautious with our peak trading period still to come," King told shareholders in his AGM update.
"We are focused, well prepared and have a clear plan to capitalise on the Christmas peak trade and the remainder of the year despite the uncertain economic outlook."
The sources: ASX Announcement, AFR
