Shares of Myer [ASX:MYR] have been declining for over a year now. And this trend appears to be continuing with their shares having dropped by 1.16% today.
Shareholders now hold large amounts of stock worth less than they hoped for.
Myer’s collapse in share price has begun to affect retail investors, who bought shares in the company during its high period in 2009.
Their shares are now valued at 0.42 cents each.
Struggling to overcome poor sales
CEO Richard Umbers has stepped down after the board came under fire for bleeding sales.
They recently lost their position on the ASX200, which has contributed to the business’ setbacks.
During the year, Myer issued a profit warning.
They have been reporting significant sales drops since mid-last year.
The Christmas and New Year period did not help them overcome this either. In fact, the situation for Myer worsened.
The poor sales figures mainly stem from increased online competition and limited financial flexibilities.
With Myer’s operating margins at such a low level, they need to expand in order to properly counter the drop.
Myer have appointed John King as their new CEO.
They are hoping he will make a significant impact for the business to further overcome its impending downfall.
Myer has confidence that their new CEO will help the business steer themselves out of this downgrade storm.
ABC.net reported that Myers chairman Mr Hounsell stated:
‘Over the course of his tenure at the House of Fraser, John and his team consistently grew revenues, differentiated the product offering and launched a successful online business, improved EBITDA and reduced the company’s debt.’
The new CEO faces large challenges ahead, but hopefully this does not spell the end for Myer.
Editor, Money Morning
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