Myer shares slump after weak first-half trading

The news: Department store chain Myer has reported weaker first-half trading to-date amid challenging trading conditions, sending its shares lower.

The numbers: The retailer said total sales for the 22 weeks to 28 December were down 0.8% to $1.59 billion, while comparable sales were in-line from a year ago. Operating gross profit was down $15 million to $560 million, while earnings before interest and tax were down $16 million to $48 million.

Myer shares slumped more than 15% to 97 cents in early trading on the ASX.

The context: Myer CEO Olivia Wirth attributed the weaker performance to “challenging trading conditions for the retail sector” driven by a tough macroeconomic environment. “Trading during last year’s key sales events including Black Friday was strong, but consumers remain cautious and focused on value given persistent cost of living pressures,” she said. The company said January is a key trading period with the half year ending on 25 January.