Myer shares tumble again as Solomon Lew says Christmas won't save them

Written on the 19 November 2018 by David Simmons

Myer shares tumble again as Solomon Lew says Christmas won't save them

With the Myer AGM just under two weeks away, you can be sure to expect that Solomon Lew and Premier Investments will be gearing up their attacks on the historic retailer.

Following the department store's bewildering Friday last week, the result of a leak to The Australian Financial Review about its Q1 sales numbers, Premier Investments has once again called out the retailer's incompetence.

On Friday the 16th November, Myer was forced to show its hand and reveal its Q1 sales numbers after The AFR leaked a draft Q1 report.

The retailer says its total sales value was down 4.8 per cent from the same time last year. Total online sales grew by 3.6 per cent during that period.

But Solomon Lew and Premier Investments, Myer's largest shareholder (and most critical) says these numbers indicate an ominous future for the department store.

"Given the parlous nature of Myer's sales, Premier can now see why the Myer Board had been so eager to hide them," says Premier Investments.

Solomon Lew, chairman of Premier Investments, warns Myer about the forecast trend for the retailer heading into Christmas.

"Premier has heard the Myer Board's claims about the importance of Q2 and Christmas to its results before," says Lew.

"Last year Mr Hounsell said the same things at the same time, then downgraded Myer's guidance during December, and the following February due to a terrible Christmas performance."

"The trend is not Mr Hounsell's friend a sales drop of 4.8 per cent is something that even Father Christmas can't turn around. Myer's admission that its online sales growth has flatlined is also of major concern as this should be an automatic area of growth in line with every other retailer."

"The failed Myer Board must go. Premier again calls on Myer shareholders to join forces to vote for a second strike at the AGM, and then vote for a spill of the entire Board."

The Myer board has until November 30 to convince shareholders that it deserves to stick around. Otherwise it's facing a spill at its next AGM.

Shares in Myer are down 5.11 per cent to $0.43 per share at 11.30am AEDT.

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Business News Australia

 
Author: David Simmons

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