Retailer Myer posted a 52 per cent fall in full-year profit to to $32.5 million as the department’s store’s strategy to resurrect growth crumbled.
Myer — a billion-dollar company at the start of 2017 — is now worth almost 40 per cent less than e-tailer Kogan.com (ASX:KGN).
At the end of Tuesday Myer’s (ASX:MYR) market cap was about $360 million compared to Kogan’s $580 million.
Myer shares have lost two-thirds of their value since the start of 2017.
Myer’s revenue fell 3 per cent to $3.1 billion and sales were down 2.7 per cent on a comparable store basis.
No dividends were declared.
However, the company refinanced its loans, lowering net debt and improving net cash flow.
Chairman Garry Hounsell says the financial results are disappointing.
“When it became apparent to the Board that the execution of the strategy was not going to deliver an improved financial performance, we made the decisive move to make significant leadership changes,” he says.
John King was appointed chief executive in June. Allan Winstanley is the new Chief Merchandise Officer and Nigel Chadwick Chief Financial Officer.
“With these appointments, Myer bolstered its global retail and financial expertise, bringing best-in-class experience with highly relevant retail, merchandising and financial skills,” says Hounsell.
During the second half, sales were down 2.6 per cent to $1.38 billion. Comparable store sales were down 2.4 per cent.
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