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To the six questions raised by Australian Securities Exchange vide letter dated 21 November 2018, Myer provided an official response today.
It all started when the Australian Financial Review published an article on Myerâs financial performance on 16 November 2018. In response to which Myer immediately clarified that the company is well versed with the regulatory disclosure obligation and duly complies with the same.
Further after the market close on 16 November 2018, the company released âResponse to ASXâ under which it claimed AFR article has presented incomplete and leaked financial information based on unapproved internal document. Along with demolishing claims made by AFR article, the company provided an actual âunauditedâ sales update for the first quarter 2019 in the same release.
The statement read that Myerâs Q1 FY19 total sales was down by 4.8% compared to previous corresponding period, however total online sales grew by 3.6% during the period. Further confronting the NPAT loss incurred during the period, the company said that âsince the last five years, Myer incurs NPAT loss in the first quarter.â Moreover, the loss incurred in Q1 FY19 is reported to be well below the loss of Q1 FY18, thereby reflecting the companyâs core focus on âprofitabilityâ.
In this event Myerâs securities went into a trading halt before the start of 16 November trading which later got lifted on 19 November. But as the trading halt got lifted, MYRâs share price fell straight by 8.9% from $0.45 on 15 November 2018 to $0.41 on the close of trading on 19 November 2018.
Following this meltdown in Myerâs securities, Australian Securities Exchange raised several queries from Myer. The questions highlighted by the ASX mainly revolved around the acknowledgement that does Myer considers the information provided in 16 November statement âResponse to ASXâ to have material effect on the companyâs price and value?
To this ASX query, Myer today stated that it does not consider that the information released in the announcement âResponse to ASXâ would have material effect on the price or value of its securities. In todayâs response duly signed by Myerâs Chairman Garry Hounsell, the company stated that circumstances led to the release of that announcement.
Moreover, in the previous release, Mr. Hounsell stated that Myer has reduced net debt by $7 million compared to pcp and has solid cash flows.
After responding to ASX queries, Myer Holdings witnessed a 1.205% increase in its share price on 27 November 2018. After that, MYR stock last traded at $0.420 with market capitalization of $340.83 million. But, in the long term performance change, the stock price of Myer Holdings Limited (ASX:MYR) declined by 41.55% over the past one year.
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