Myer Holdings Limited [ASX:MYR] is an Australian department store retailer currently with 66 stores across Australia. Two more are rumoured to be opening next year. The department store offers fashion and apparel for men, women and children. They also sell cosmetics, accessories, homewares, furniture and electrical goods.
The share price closed down 7.37% on Wednesday.
Sales of the first three months of the financial year have disappointed shareholders. Again. Sales grew by 0.1% year on year to $691.6 million. Both Deutsche Bank and J.P. Morgan estimated 2.0% and 3.5% growth respectively.
Like for like sales were up 0.7%.
This sort of sell off tells you shareholders were expecting more from the department store in the first quarter.
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It’s been a miserable year for the department store shareholders. Year to date, the stock is down 35.7%.
Myer CEO Bernie Brooks said today that flat results like this are an industry wide problem. However, he claimed Myer was hardest hit.
Brookes has told the market this morning that Myer is ready for Christmas trading. This is a key period for the retailer, so watch out for the results in January next year.
Also, The Age noted today that the stores causing the most problems for Myer are in lower socioeconomic areas.
Today the share price touched the all-time low of 1.76. There is very little technical support at this point, which means another bad day on the markets could see the share price fall even further.
Myer may seem cheap, but don’t be fooled into thinking it’s a bargain.
In additional, there’s still a very strong chance the company will report a net loss for the 2015 financial year.
Shae Smith+
Editor, Money Weekend
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