Myer Share Price on Hold amid Trading Halt

At time of writing, the share price of Myer Holdings Limited [ASX:MYR] is in limbo as the ASX forced the company into a trading halt.

The trading halt comes after an article in the Australian Financial Review (AFR) claimed that sales were down significantly.

It has been a difficult year for Myer’s share price. It’s currently down 43% from a high on 30 November, last year.

myer share price graph

Source: marketindex.com.au

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Vague response to ASX query triggers trading halt

The AFR article in question alleged that Myer’s sales are down 5.5% year-on-year and additionally, despite a 41% increase in online sales over the same period two years ago, sales in this segment are down 5.2% versus last year.

The article compared the retail giant to the USS Cole a US warship that was attacked by al-Qaeda, leaving it with a gaping hole in its hull.

It went on to accuse the board of the company of secrecy surrounding earnings.

The company released a noticeably vague response to the article claiming that:

The Company is well aware of its continuous disclosure obligations and confirms it is in compliance with them.

Where does the Myer share price go from here?

There are a number of factors that indicate it could be hard to see anything but a steep drop for the Myer share price from here.

There is less than a fortnight to go until the company holds an AGM, where a second remuneration strike could occur causing a board spill.

Meanwhile Myer is fighting a class action lawsuit regarding its past disclosure failures.

Retail certainly is a tough gig.

Regards,

Lachlann Tierney,
For Money Morning

PS: We detail one retail stock that could be set for a strong finish to the year in our free report available here. Download it now.


Lachlann Tierney is a writer for Money Morning and has been investing for nearly a decade. With an MSc from London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely.


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