Premier Investments, Myer shares continue to slide on lower sales
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The news: Retail groups Premier Investments and Myer both extended losses from Monday after reporting declines in first-half sales amid challenging trading conditions.
The numbers: Premier shares were down 4.82% to $26.45 by 12:16pm AEDT, while Myer fell 3.98% to 84 cents.
Shares in both Premier (-15.92%) and Myer (-23.14%) plunged on Monday after reporting lower-than-expected first-half sales.
The context: Citi retained its 'neutral' rating on Premier but shaved its target price from $36 to $30.
Its analysts noted that Premier could be finding it harder to offset ongoing cost increases over the short-term, while concerns over the underperformance of sleepwear brand Peter Alexander may impact longer-term earnings growth.
Premier's shareholders will vote next week on Myer's proposed acquisition of its Apparel Brands business in Australia and New Zealand, which includes brands Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E.
The source: Citi research
