After coming out of a trading halt, the share price of Myer Holdings Ltd [ASX:MYR] has fallen by 6.1%, trading at $0.42.
The trading halt yesterday came in relation to an article in The Australian Financial Review (AFR), which alleged that Myer’s sales for the most recent quarter had dipped by 5.5%.
Myer’s share price has fallen by 41.4%, for the year.
Myer confirms dip in sales
In an announcement released today, the company attacked the AFR article as containing, ‘unlawfully leaked, draft and incomplete financial information taken from an unapproved internal document.’
The announcement then went on to confirm the dip in sales, albeit a slightly smaller dip in sales than the initial AFR reporting indicated.
Myer advised that Q1 FY19 total sales were down 4.8%.
Is it time to sell MYER shares?
Myer attempted to lessen the damage from the lowered sales by stating that, ‘trading during the second quarter represents the most important contribution to Myer’s full year profitability.’
In essence, they are hoping for a Christmas miracle.
The CEO and Managing Director, John King stated that sales were not the priority:
‘I want to be clear, our focus is on profitability and we will not chase unprofitable sales just to hit our top line sales number.’
These comments come as the Myer Board is under pressure from major investor Solomon Lew and his company Premier Investments to improve performance or vacate their positions:
‘The failed Myer Board must go. Premier again calls on all Myer shareholders to join forces to vote for a second strike at the AGM, and then vote for a spill of the entire Board.’
Mr Lew will be hanging onto his shares as he bought them at $1.15 in March of last year.
However, if you don’t have as much skin in the game as Mr Lew, it could be wise to jettison Myer shares as a turnaround looks a long way off at the moment for the embattled retailer.