Myer’s Share Price Plummets 5.75% on Back of $486 Million Annual Loss

In its first loss since being listed on the ASX in 2009, Myer’s share price has been actively declining over the last six months. It’s a far cry away from its $12 million profit in the 2016–17 financial year.

And the results speak for the disappointment themselves, as Myer Holdings Ltd [ASX:MYR] has announced it will not be paying a final dividend this year.

No turnaround foreseeable for Myer’s share price

Myer hit a record low close, after its total market value came in at $357 million. It’s apparent that for all the work done in order to turnaround the company, it was to little avail.

Back in February, the company sacked its then chief executive Richard Umbers in a bid to get the retailer back on track.

Mr Umbers took up the position in 2015, in order to launch his own turnaround strategy, but Myer still failed to hit sales targets.

And it seems the only strategy Myer is willing to embrace comes under the quick fix — if it doesn’t work, scrap it. This could continue to be dangerous for Myer’s share price, without a consistent director’s board there to help long-term strategies.

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The company continued its decent from grace in March when it was jolted out of the benchmark ASX 200 index, because of its plunging value.

During 2018’s first-half profit loss, which saw between $37 million and $41 million, down from $63 million, Myer chairman Gary Hounsell said this:

We need a fresh approach because what we’re doing at the moment doesn’t seem to be working.

But what followed was a shake-up that led to a lot of shareholder scrutiny that is still impacting Myer’s share price to date.

The retailer also replaced Jennifer Hawkins as brand ambassador after she stepped down from her alleged $1.3 million contract, for Elyse Knowles and her $150,000 deal.

CEO admits disappointment with Myer’s share price

Today, Mr Hounsall and chief executive John King voiced great disappointment over the results.

These results are obviously disappointing and shareholders deserve better’ they said in a statement.

While the future of Myer isn’t looking the brightest, it seems that Myer is in despite need of a new approach — if they want to turn sales around and get value back to its share price.


Ryan Clarkson-Ledward,
For  Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

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