Myer leads list of retailers axed from ASX
Myer shares have dropped two thirds of their value in the past year amid sluggish sales and a series of profit warnings.
In its quarterly index reweighting announcement on Friday, S&P Dow Jones Indices has now dropped the retailer from the index of the top companies on the Australian Securities Exchange.
Myer listed on the ASX in November 2009 at $4.10, but its shares have fallen over 60 per cent within the last 12 months – last valued at 45.5 cents before the market opened on Friday.
In February, Richard Umbers stepped down as CEO and managing director of the department store retailer.
Retail veteran Solomon Lew, who has been pushing for a complete overhaul of the department store chain’s leadership team, last month contacted all Myer shareholders ahead of a proposed extraordinary general meeting.
Meanwhile Baby Bunting, Radio Rentals’ parent Thorn Group and phone retailer firm Vita Group have been removed from the ASX 300.
Baby Bunting posted double-digit profit and earnings declines for the first-half of fiscal 18, weighed down by slower sales and investment in lower prices amid consolidation in the sector.
Billabong, The Reject Shop and clothing company Gazal Corporation – which supplies the likes of Myer, David Jones, Country Road and owns a stake in Oroto – have also been removed from the All Ordinaries Index.
In its latest trading update, Billabong’s half-year net-loss deepened by 29 per cent over the prior period to $18.4 million as momentum in America was more than offset by declining earnings in Europe and Asia Pacific.
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