MYER SHARES TUMBLE AS PROFITS HIT HARD BY RETAIL FAILURES

MYER'S (ASX: MYR) full year profit will be largely wiped out because of weak trading conditions and the struggling performance of two major brands.

The Melbourne based retail group anticipates its $60.5 million expected full year net profit will be now between $66 to $70 million, but that will be hit by $20 million in costs and a loss of $45.6 million from two brands under the Myer umbrella.

The group announced today it will take a total $45.6 million hit after writing off the value of its stake in TOPSHOP TOPMAN's Australian franchisee Austradia and suffering a $38.8 million impairment charge because of sass & bide's poor performance.

Myer currently holds a 20 per cent interest in Austradia, the Australian franchisee of TOPMAN TOPSHOP, who appointed administrators in late May.

Myer today announced the decision to write down the value of its stake in Austradia valued at $6.8 million.

The group also confirmed it has been unable to secure a deal with the UK based owner of TOPSHOP to allow for the continuation of concessions in Myer. Read more

David Simmons - Business News Australia - 20 July 2017