Myer Share Price Plummets by Nearly 4.6% on Whopping $485.8 Million Loss
The full year results of fallen retail giant Myer Holdings Ltd [ASX:MYR] have been announced, and the verdict is in:
They’re even more dismal than the last quarterly sales update we heard from the fallen retail giant.
As a result, the share price spiralled down to a mere 0.42c yesterday, indicating a drop of 4.6%.
Why Has Myer Fallen?
Earlier in the year, Executive Chairman Gary Hounsell had tried to lay blame on the weather for poor seasonal results, but in light of the full year’s decline it’s clear that other forces are at play.
In comparison to the last financial year, Myer’s seen some sharp declines.
Total sales were down by 3.2%, loss after tax was reported at $485.8 million and it’s been revealed that no dividend is to be paid.
In addition, the cost of doing business increased by 1.5% to $1,035 million.
These less than attractive results haven’t impressed shareholders.
What’s next for Myer?
For those who’ve been tuning into news in the retail sector as of late, Myer’s results wouldn’t have been a shock.
The industry has grown increasingly competitive, with more and more options multiplying at customer’s fingertips by the minute.
On a brighter note, new CEO John King only started his tenure in June. Known as the man who revived British department store House of Fraser from 2006 to 2014, his leadership could see a gradual return to glory for the Australian retail leader.
In addition, ecommerce is still a relatively new player on the scene. One positive aspect of Myer’s results indicated a healthy rise in online sales. If Myer can yield this success and strategise accordingly, then former status could eventually be restored.
Either way, there’s going to be some long, hard work ahead for Myer.
For Money Morning
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