Investors sold down Myer shares after the department store announced flat sales for the first quarter of the financial year.
Its shares fell more than 6% to $1.78 today and have lost more than 25% in value in just two months.
Total sales for the three months to October 25 were flat, up just 0.1% to $691.6 million and below market expectations.
Cosmetics, toys, childrens wear and menswear were the strongest selling items.
Bernie Brookes, Myer CEO, says trading gathered momentum as the quarter progressed.
The store is now looking to Christmas.
Myer’s Christmas Giftorium, a one-stop destination for all festive gift giving, was launched in all stores in October.
“We believe the business is well positioned to make the most of the busiest time of the year during Christmas and the Stocktake sale,” says Brookes.
Myer shares were hammered after it released full year results in September showing a fall in net profit of 22.6% to $98.5 million. Total sales were flat at $3.143 billion.
Major competitor David Jones, bought by South African retailer Woolworths in a $2.1 billion deal, is being restructured, initially lifting the profile of Country Road and making major changes among its executives.
Sales At David Jones rose 2.4% to $1.89 billion in the year to the end of July. Net profit fell 21.2% to $75 million.
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