Shares in department store chain, Myer, took a pounding yesterday, hitting a new all time low after it unveiled what was seen as a lacklustre sales update.
The shares touched $2.99, the lowest they have been since the float late last year at $4.10.
They closed at $2.99, down 12c or 3.8% on the day.
The shares were issued at $4.10 late last year, but never traded at that price.
The high since listing is $3.98, so the loss since listing is more than 26%. (There has also been a 10.5c a share interim dividend).
Myer earlier told the ASX that March quarter sales were flat.
It said that topline sales growth was flat in the March quarter, while same store sales rose by just 0.3%.
That was after a 2% rise in the six months to December and a 1.2% rise in same store (like for like) sales.
In the 9 months to 24th April the retailer said "total sales grew by 1.4% to $2,468 million and like for like sales were up 0.9% compared to the previous corresponding period".
Even though that represents a slowing, it is still better than the Target and Big W chains of Coles (Wesfarmers) and Woolies which saw same store sales contract in the March quarter.
But Myer joins the likes of Coles, Woolies, Harvey Norman, Clive Peeters, Fantastic Furniture and JB Hi-Fi in reporting a slowing in March quarter sales growth.
Interest rate rises, an absence of Government stimulus spending and a warm autumn has been used as excuses for the slowdown in sales growth by the retailer.
All are very real influences, all contributed and the slowdown is industry wide, even among food retailers like Woolies and Coles.
Myer singled out home products such as furniture, children’s’ clothing and menswear as doing best in the quarter.
The retailer said the strongest performing states were WA and South Australia.
It said that "while we anticipate that trading in the fourth quarter will be challenging until the full impact of the Federal Government stimulus has passed, we reaffirm our full year guidance for sales growth of 1% to 2% to between $3,293 and $3,326 million, and EBIT growth of 10.7% to $261 million.
CEO, Bernie Brookes said in the statement: "This is a pleasing result in the context of a very challenging trading environment where we cycled the Federal Government’s second, larger stimulus payments and saw the impact of further interest rate rises on consumer discretionary spending.
"In anticipation of facing tough trading conditions in the third quarter, we pulled a number of levers to drive traffic and sales, including successfully utilising our MYER one loyalty program to engage our customers with relevant promotional offers.
"In addition, Project Blue Sky, a collaborative campaign between Myer, our suppliers and our media partners, was a huge success, with participating suppliers recording sales in excess of 10% above non-participating suppliers.
"Myer’s store expansion program is on track.
"We have two new stores opening during the next few months.
"Our new store at Top Ryde (NSW) will open on 4th August and our new store at Robina (QLD) is expected to open in October 2010.
"In addition to these store openings, construction on our new store at Mackay commenced in early May and work is expected to begin on Townsville in July.
"We are also excited to announce today the signing of an additional store in the Lakeside Joondalup centre in the northern suburbs of Perth, which will give us a total of seven stores in Western Australia."
