Myer Holdings' trading update supports 'cautious' view on rival Accent - Citi

Myer Holdings

08/08/2023 20:31

** Analysts at Citi say trading update provided by
Australian retailer Myer Holdings  MYR.AX  supports brokerage's
"cautious" view on retail rival Accent Group  AX1.AX  
    ** Myer shares tanked as much as 15.5% to the worst in
almost three years on Tuesday, following company's
weaker-than-expected net profit after tax (NPAT) forecast for
FY23
    ** Myer expects FY NPAT to be between A$69 mln ($45.33 mln)
and A$73 mln, missing Refinitiv estimate of A$88.5 mln
    ** Myer's update is consistent with the concerns Citi
flagged for Accent, highlighting a poor consumer environment and
rising cost of doing business pressures, says brokerage
    ** Brokerage says Myer's higher inventory clearance in
department stores suggests company may have increased
discounting to support sales as buyers reduce discretionary
spending
    ** Citi continues to see downside risks to Accent Group's
sales forecast for fiscal 2023 and first half of fiscal 2024
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))