Myer Holdings (Not - Rated) Q3 17A sales update (Read through for WHL's David Jones and Country Road)
​Myers Holdings Ltd (Not Rated) - Weak Q3 17A sales update
MYR’s Q3 17A sales update imply likely softer revenue growth for WHL’s (Sell, TP ZAR 62.5/share) David Jones and CRG in H2 17e
Q3 17A sales decreased by 3.3% y/y to AUD 0.65bn and LfL sales decreased by 2.0% y/y. Australian clothing retail sales grew by an average of 0.2% y/y over a similar period, indicating that MYR performed weaker than the market in Q3 17A.
Total sales for the 9M 17A decreased by 1.3% y/y to AUD 2.4bn and LfL sales decreased by 0.3% y/y. Over a similar period Australian clothing retail sales grew by 4.3% y/y whilst MYR’s key peer David Jones reported H1 17A turnover growth of -0.5% y/y and 4.0% y/y after adjusting for Boxing Day.
Negative read-though for WHL’s David Jones (22% of group sales) and Country Road (15% of group sales) performance in H2 17e - Australian department store sales declined by 3.3% y/y in the quarter ending March 2017 and 0.9% y/y in the LTM. With store closures continuing (MYR closed two stores in Q3 17A), pressure on department store sales are unlikely to subside, with the channel likely losing competition to online sales (MYR’s online sales up 36% y/y in the nine months to April 2017 and David Jones +30.0% y/y H1 17A).
Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa.
Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.