More bad news for Myer as warm weather freezes sales

Sales declined 3.1 per cent on a comparable store basis for the 13 weeks to 28 April, an improvement on the 3.6 per cent decline experienced in the second quarter.

The company also announced that it's incoming CEO John King will take up the role on the 4th of June, it's hoped he will be able to turn the troubled department stores sales around.

Myer has forgone an investor briefing for its third quarter results, and announced on Wednesday that from the start of FY19 it will no longer provide quarterly sales updates to the market.

The Myer Holdings Ltd (ASX:MYR) share price gained 1.5 cents or 4 per cent to 39 cents after the department store reported third quarter sales have dropped 2.7 per cent to $635.3 million. Online sales, which account for about one twentieth of total sales, surged 49 percent.

The numbers mark Myer's six straight quarter of negative sales growth, and follows its recent $476 million record loss.

For the year to date, the business announced total sales of $2.35 billion, down 3.4% on the previous year's total sales.

On Wednesday, the company blamed an unseasonably warm start to the Australian winter for continued the sales decline.

In March, soon after ousting its CEO, Myer posted its biggest half-yearly loss since listing as it wrote off underperforming assets. Year to date online sales jumped 49% to $141.1 million.

Myer has also warned Q4 profitability may be hampered by the comparatively warm start to winter.

Hounsell asserts King has already visited many stores, "talked with team members and customers", and understands the "significant task" associated with turning around the business.



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