Caution, yes in Myer’s (MYR) third quarter sales update yesterday, but none of the bad news we have seen from fellow retailers, Target and Fantastic about weak sales, falling profits or a lack of buyers.
But once again investors took fright and sold the shares off. The shares fell 8.5c to $2.685, a drop of more than 3%, which was an over-reaction.
MYR YTD – Lifts sales a touch, market goes naaaah!
Myer reported sales of $652.5 million in sales for the three months to April 27, a half a per cent increase from the previous corresponding year.
The department store chain said comparable store sales rose 0.4%, the fourth consecutive quarter of positive growth.
That’s a lot better than the fall in top line and comparable store sales seen at Target for instance.
The company said in yesterday’s statement that the best performing departments were menswear, cosmetics, womenswear and childrenswear IN Victoria, Queensland and New South Wales and better-performing states.
Myer chief executive Bernie Brookes said his chain remained cautious about Australia’s retail industry outlook.
He added that the firm would focus on carrying out its "five-point strategic plan….improving customer service, enhancing our merchandise offer, optimising out store network, strengthening our loyalty program and building a leading omni-channel offer".
During the quarter, Myer opened a new store in Shellharbour in NSW, and was refurbishing three stores in Indooroopilly in Brisbane, Queensland, Adelaide City in South Australia and Miranda in southern Sydney NSW.
In March, Myer reported a net profit of $87.9 million for the 26 weeks to January 26. That was up 0.7% from the same period the previous year and better than the market had expected.
