What Happened to the Myer Share Price?
Myer Holdings Limited [ASX: MYR] is an Australian department store retailer comprising 66 stores. The department store offer fashion and apparel for men, women and children. They also sell cosmetics, accessories, homewares, furniture and electrical goods.
The company closed down 12.96% on Thursday.
Why Did This Happen to MYR Shares?
The 2014 financials showed a net profit after tax (NPAT) decline of 23%. And the final dividend was cut to 5.5 cents. The 2013 final dividend was eight cents.
What Now For Myer Holdings Limited?
CEO Bernie Brookes tried to shift the blame for this year’s poor financial results.
Among today’s press releases, Bernie Brooks has blamed the NPAT fall on the following:
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• The government’s indecisive budget is causing people to be wary of spending
• Consumer sentiment and secure employment are stopping people from spending
• It was too warm at the start of winter to move winter stock
• It was too cold at the start of summer last year to shift summer stock
• Four of the top 25 stores have been closed and/or limited operating capacity while a refurbishment was carried out
In other words, it’s not his fault.
This is the fourth year in a row Myer has reported a net profit loss.
Brookes has repeatedly glossed over bad earnings in the past. And this is no different. He’s telling shareholders that the company will trade in the black in early 2015.
It baffles me why investors are still willing to believe that things will be better in the future.
However, OptionsXpress market analyst Ben Le Brun says the speculation that Myer may be a takeover target from an international company is behind the 20% rise in the share price since June.
At this point, that’s all Myer shareholders have to hope for. Without an overhaul of the leadership team from the top down, Myer is in no hurry to become a business worth investing in.
Shae Smith+
Editor, Money Weekend
The post Why the Myer Share Price Crashed Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
