A lot has happened with Myer Holdings Limited (ASX: MYR) on November 16, 2018 which might impact the company’s image in the eyes of the market players. The Australian Securities Exchange or ASX had decided to put the securities of the company on the trading halt. However, later on, the company requested that to keep its securities in the trading halt. Finally, the company released sales value for Q1 FY 2019. Apart from keeping the market participants uniformed, most of the day was spent by the company towards the activities which could help the company to gain back the confidence of the participants.
When Myer reported their sales figure, they stated that the numbers which were earlier published by the giant publishing house were based on the leaked as well as incomplete information. As per the reports, the company stated that they encountered growth of 3.6% in regard to the online sales during Q1 FY 2019. However, the company has also included the in-store purchases made by them in the calculation. These in-store purchases are the ones which are being made at the fixed iPad terminals. However, the chief executive officer or CEO of the company had earlier stated that the company has its clear focus on the profitability and they won’t chase the unprofitable sales so that their top line sales numbers witnesses the positive impact. As per the giant publishing house, the company’s largest operating costs are the fixed costs which include administration as well as rent, and if the company decides to reduce the variable costs, which includes labour as well as marketing, its revenue numbers would be adversely impacted.
A Quick look at the Financial Results
On September 12, 2018, Myer Holdings made an announcement regarding the financial results for the 52 weeks to July 28, 2018. The company’s NPAT or Net Profit After Tax amounted to $32.5 million. This figure was calculated before considering the individually significant items as well as implementation costs. The company’s chairman sounded disappointed with respect to the yearly results. He stated that when they recognized that strategy execution would not be delivering better financial performance, they decided to make some changes in the leadership.
He also stated that after the search, they made certain appointments. John King was appointed as Managing Director and CEO (chief executive officer), Nigel Chadwick had been appointed as CFO or chief financial officer, and Allan Winstanley was appointed as Chief Merchandise Officer. The company’s total online sales amounted to $239.4 million in the full year 2018. The company also witnessed a decline in the operating gross profit and amounted to $1,184.4 million.
The stock price of Myer Holdings had witnessed significant downtrend on November 19, 2018. The stock price closed at A$0.410 per share which reflects an intraday fall of A$0.040 per share or 8.889%. It has a market capitalization of $369.58 million. Over the past three months, the stock price has witnessed a decline of 9.09%. In addition, its stock price is trading in the lower range.