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Tag: Myer

  • Myer Expects Lower Profits

    Myer Expects Lower Profits

    Myer has warned that its fourth quarter profits may be impacted by lower sales on its winter ranges following an unusually warm start to the cold season.

    The struggling department store said on Wednesday that its third quarter sales declined by 2.7 per cent to $635.3 million, ahead of analyst expectations.

    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.

    Citi analysts had expected Myer’s third quarter sales of $621 million and a comparable sales decline of 3.5 per cent.

    But executive chairman Garry Hounsell threw a cloud over fourth quarter profit on Wednesday, saying that unseasonably warm weather had impacted winter sales.

    “In February we announced a renewed focus on product, price and customer service, which delivered encouraging results during March,” he said.

    “However, as reported by a number of other retailers, the unseasonably warm start to winter has impacted sales, particularly in winter apparel, shoes and accessories, which may impact profit in the fourth quarter,” he said.

    Hounsell gave no specific guidance on Wednesday but analysts are concerned that if earnings fall too far Myer could be at risk of breaching its banking covenants.

    Myer has been in talks with lenders in recent months to negotiate terms on a new debt facility after booking a $515 million write down in March.

    Critical shareholder Solomon Lew has expressed concern that Myer is in a precarious financial position in relation to its covenants.

    The warmer start to Winter has impacted ragtraders across the country over the last few months, spurring elevated levels of discounting heading into June that has put pressure on margins.

    Hounsell said in March that he was pushing staff to “trade the business harder” and was taking a number of steps to improve the competitiveness of the business, including more discounting.

    Citi analyst Bryan Raymond said Myer had delivered a credible third quarter result in a challenging environment.

    “LFL sales momentum has not meaningfully improved, but is not getting worse, despite a headwind from weather,” he said.

    Citi said Sydney average temperatures in April were four degrees above 2017 and the long term average, while Melbourne and Brisbane were two degrees above 2017 and the average in April.

    It was also announced that incoming chief executive and managing director John King is due to start in his new role on 4 June, following the approval of his visa.

    “John has already visited many stores, talked to team members and customers and understands the significant task at hand in turning around the business,” Hounsell said on Wednesday.

    King will replace departed chief Richard Umbers, who left earlier this year amid declining sales that Myer has yet to turnaround.

    Myer’s year-to-date sales were down 3.4 per cent as at 28 April to $2.35 billion, while comporable store sales were down three per cent.

    Third quarter online sales increased by 49.4 per cent to $35.9 million. Online year-to-date sales were up 49 per cent to $141.1 million.

    Citi said online sales are now around six per cent of Myer’s total sales, estimating that bricks and mortar LFL sales fell by five per cent in the third quarter, marginally better than the first half (-5.8 per cent).

    “The continued strong performance in our online business is pleasing and we will continue to invest in growing this business,” Hounsell said.

    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.

  • Myer’s reputation suffers and on the way back

    Myer’s reputation suffers and on the way back

    In 2009, when former Myer CEO Bernie Brookes listed the department store on the Australian stock exchange, Myer was ranked as one of the top 10 most reputable companies in Australia.

    Today, of the 60 companies ranked on the Australian Corporate Reputation Index, it is ranked 45th.

    The Reputation Institute’s Index, the 2018 edition of which was released yesterday, has tracked a steepening decline in how consumers view the beleaguered department store chain relative to other Australian businesses.

    Myer ranked in the top 10 Australian companies on the index from 2008-2012, but in tandem with its ailing trading performance had dropped to 22nd last year, a result that has again worsened with the largest contraction in points on the index.

    It comes just a month after the retailer incurred a $515 million write down on the value of its brand names and goodwill, reflecting the erosion of the iconic business in recent years.

    Consumers were clear on what Myer was lacking – it ranked 60th on the individual measurement of innovation in 2018.

    “These results indicate that Myer has not met the challenge of adapting to the changing demands of consumers and an increasingly competitive landscape,” Reputation Institute ANZ managing director Oliver Freedman said.

    Just under 6000 Australian consumers were surveyed in late February/early March for the index, which encompasses Australia’s top 60 companies by revenue.

    JB Hi-Fi was once again the top ranked retailer on the index, despite its rank falling from 3rd to 6th in 2018 as airlines such as Virgin, Qantas and rank one business Air New Zealand surged.

    German entrant Aldi maintained its position at rank 9, well above Wesfarmers at rank 20 (19th in 2017) and Woolworths, which improved from rank 26 in 2017 to rank 22 in the latest index.

    Myer’s reputational woes are worsening, but it still fares better than 7-Eleven, which failed to change its rank in 2018 and remains at 58th on the overall measurement, above Telstra and News Corp Australia.

    Freedman said that the overall results indicate that Australian companies are bucking the trend in relation to how consumers are viewing reputation.

    “Globally, the Reputation Institute is seeing a trend of nationalism, where local consumers rank local companies higher in terms of overall reputation,” he said.

    “However, Australia is veering from this pattern, with our top 10 containing a mix of Australian and international companies, showing even those organisations headquartered overseas can make an impact locally with good leadership, a strong product and community involvement among other measures.”

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  • Myer shares soar after new reports

    Myer shares soar after new reports

    Myer’s share price has shot up 8.7 per cent in early Friday trading as reports swirl that rival David Jones is considering acquiring the department store.

    Reports this morning in The Australian cite the confidence of market sources that DJs parent Woolworths Holdings is looking seriously at a potential acquisition given Myer’s current market value of around $300 million.

    The South-African based retail business recently booked a $712 million write down on the value of DJs, which it acquired in 2014 for $2.15 billion, but is thought not to have been soured on the prospect of investing additional capital in Australia’s department store sector, given the opportunity to significantly increase its scale.

    But a spokesman for Woolworths Holdings told AAP the rumours were untrue and the company had no plans to buy Myer.

    “These rumours have no basis,” he said.

    “We are not considering an acquisition of Myer and there have been no discussions regarding an acquisition with advisers or between the two companies.”

    Should an offer be made Myer’s largest shareholder Premier Investments, chaired by retail veteran Solomon Lew, could present as a thorn in Woolworths’ side.

    It would not be the first time, Lew held out on the Johannesburg-listed business over its DJs acquisition in 2014, buying up 10 per cent of the company’s shares before the deal, selling at a premium.

    Myer’s share price closed at 35 cents on Thursday evening, but by 11:40 AEST on Friday was trading at 38 cents.

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  • Rescued retailers’ employees finally paid out

    Rescued retailers’ employees finally paid out

    Administrators for rescued retail chains Marcs and David Lawrence have paid out all employees affected by the company’s transition to new ownership.

    Deed administrator Rodgers Reidy said M. Webster Holdings, which formerly traded as Marcs and David Lawrence, paid a distribution to the employees of the company representing payment in full of employee entitlements.

    “While many current employees were re-employed by FFS Retail, a subsidiary of Myer, when it purchased the assets, those employees who were not re-employed have now been paid their entitlements in full,” said Andrew Barnden of Rodgers Reidy.

    “We have been working closely with Myer to transition the assets to FFS Retail in a seamless manner.

    “In the new year we expect to pay a distribution to the unsecured creditors of the company, which will finalise the successful sale and restructure of the company. We also understand that many former suppliers have also benefited from the sale through ongoing trade.”

    Myer salvaged the Aussie fashion duo from liquidation in April.

    The fashion retailers, which are two of Australia’s best-known labels, had employed about 1130 staff in Australia and another 42 in New Zealand across their 52 stores, 11 outlets and 140 concessions, until entering administration in February.

  • Myer drops sales targets this year

    Myer drops sales targets this year

    Myer is committed to dedicated clearance floors in its department stores despite major shareholder Solomon Lew fuming that the old stock would be more at home in a Salvation Army op shop.

    Myer executive Tony Sutton told investors at Wednesday’s strategy day that the clearance floors represented a foray into the $4.6 billion “off-price” retail market.

    Sutton said off-price was about selling wanted brands at significant discounts, a strategy that has brought success to the likes of DFO and US retailer TK Maxx.

    “We see this as a new potential market for Myer and sits adjacent to Myer’s current proposition,” Sutton said.

    The commitment flies in the face of Myer’s promises earlier this year to move away from heavy discounting.

    Sutton, the executive general manager for stores, said sales for the eight Myer stores piloting the clearance floors over the past six weeks had been positive.

    Sales in the last full financial year dropped 2.3 per cent across the eight stores, but – excluding online sales – they had risen 3.7 per cent since clearance floors were introduced.

    Sutton said clearance floors had helped US department stores such as Nordstrom boost their sales.

    But Lew – the chairman of major shareholder Premier Investments – has been critical of the clearance floors, saying in September the apparel was up to three years old and belonged “in the Salvation Army”.

    Meanwhile Myer has dropped the sales targets it set as part of its much-vaunted turnaround plan after unveiling another weak set of figures to investors.

    Chief executive Richard Umbers said average sales growth above three per cent between 2016 and 2020 was no longer achievable at the department store chain because of stiff competition and weak consumer spending.

    But the chief executive said on Wednesday his co-called ‘new Myer’ turnaround plan remained sound despite a 2.8 per cent decline in first-quarter sales.

    “Two years ago when we released the New Myer strategy we did not anticipate the extent of deterioration in market conditions,” Umbers told investors at a strategy day.

    “Our ambition of three per cent sales growth seemed appropriate at the time but it doesn’t seem appropriate now.”

    Umbers acknowledged it was longer than expected to turn the business around, but said that did not mean it was wrong to focus on young shoppers, popular brands, concessions and targeted closures.

    “A tough external environment cannot be a reason to slow down or stop investment for the long term,” he said.

    Myer said it would now measure performance against sales per square metre growth, although it has roughly halved that target to “more than 10 per cent” until 2020.

    Umbers’ previous target for growth in earnings to outpace that in sales has also been scrapped.

    Umbers said the retailer was now focused on what he indicated would be a more meaningful second quarter including the spring racing and Christmas trading periods.

    Lew was quick to respond following yesterday’s strategy update and release of its quarterly results, noting Myer has “left the strategy in place despite the very clear evidence that it has failed.”

    “Premier also notes the improvement in Big W’s sales performance announced yesterday for the same period,” the company said in a statement.

    “Today’s announcements by Myer are final proof that Garry Hounsell is unelectable as chairman of Myer. Hounsell has promised to deliver more of the same failed new Myer strategy, and he will now reward the Myer management team for taking the company backwards.”

    Lew – who heads up the parent company of Smiggle and Peter Alexander – is leading a campaign to overhaul the department store retailer’s board.

    The retail veteran also commented on Myer’s turnaround strategy, in which Myer chairman-elect Hounsell had previously said was beginning to show “green shoots” of recovery.

    “I only see weeds, no green shoots,” said Lew.

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  • Myer ‘disappointed but unsurprised’ by Premier Investments

    Myer ‘disappointed but unsurprised’ by Premier Investments

    Department store retailer Myer has responded to the broadside delivered by veteran and chairman of Premier Investments yesterday, asserting its “disappointment”.

    Yesterday, Premier released a statement which ruled out making a takeover offer for Myer and again reiterated that it will be monitoring the Myer “strategy day” on November 1 “very closely”. Premier again called upon the company to announce its current sales and profits for the Q1 period “so the market is fully informed when assessing the strategy.”

    Myer chairman Paul McClintock said the annoucement was “disappointing, but unsurprising”.

    “We have attempted to engage in constructive dialogue with Premier for many months, but regrettably this has not been possible,” he said.

    McClintock said Myer’s board had considered Premier’s “informal proposal” to appoint three nominee directors, but rejected it on the basis of a potential conflict of interest, “given Premier and its associates’ status as one our largest suppliers and competitors.”

    “The Myer board continues to support the new Myer strategy and recommends that shareholders vote in favour of all resolutions, including the election of three directors put forward by the board,” he said.

    Incoming Myer chairman Garry Hounsell and former Qantas director will step into the new role when McClintock retires next month.

    Myer has also announced the appointment of JoAnne Stephenson to its board as a non-executive director.

    Premier said it will vote against the appointment of all directors proposed in Myer’s Notice of Meeting, including Hounsell.

  • Myer welcomes Android and Apple pay on new credit card

    Myer welcomes Android and Apple pay on new credit card

    Myer has become the first Aussie retailer to launch Android Pay and Apple Pay on a Visa card, in a move that the department store retailer says accelerates its commitment towards digital.

    Launching this month, the card is issued by Macquarie Bank and supplied by Visa payment technology. It allows shoppers to access smart phone digital wallets and designed to make it easier to track and manage spending through the Myer credit card app.

    The new card is also now the only way for customers to earn Myer one shopping credits on eligible credit card purchases.

    “The card will provide our customers with an easier way to pay and reward them for their loyalty,” said Richard Umbers, Myer CEO and managing director.

    “We are delighted with our partnership with Macquarie and Visa which will further accelerate the growth of Myer’s digital capability.”

    The head of Macquarie’s Banking and Financial Services Group, Greg Ward, said the finance firm had offered credit cards directly and through white label arrangements for “many years” and that the Myer partnership was the “latest step in supporting innovative digital banking solutions for Australians.”

    Stephen Karpin, Visa’s group country manager for ANZ and the South Pacific, said digital technology is driving “new and imaginative commerce experiences” within retail, and that “how people pay is at the heart of these experiences.”

    It’s the second tech-related launch embarked on by Myer in recent weeks, after the department store retailer dipped its toes into radio frequency identification technology, with a six to eight week trial.

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  • Premier Investments requests Myer’s shareholders list

    Premier Investments requests Myer’s shareholders list

    Solomon Lew’s retail group Premier Investments has asked for Myer’s list of shareholders in a sign it may push for a seat on the board of the struggling department store.

    The company said it has made the request in order to consider writing to Myer’s members about any resolutions proposed for Myer’s annual general meeting in November.

    Premier Investments bought a 10.77 per cent stake in Myer in March, which has since lost around a third of its value to $64 million due to Myer’s sliding share price slid amid its weak financial performance.

    Lew this week accused the department store of losing its way, and misleading investors about how poorly it was performing in 2017.

    He has also said Myer’s newly opened clearance floors contain stock of up to three years old that “belongs in the Salvation Army”, and said the company is run mostly by consultants.

    Presenting Premier Investments’ financial results on Monday, Lew told analysts: “Whatever happens at Myer, we would like a seat at the table.”

    Shares in Myer, which are trading ex-dividend on Wednesday, jumped on the news, adding five cents, or 6.9 per cent, to 77.5 cents.

    Conversely, shares in Premier Investments continue to take a battering after it reported a modest annual profit increase, falling to a three-month-low on Wednesday.

    Smiggle and Peter Alexander continue to drive revenue growth for Premier Investments, but Morgan Stanley analysts have warned its apparel brands Jacqui E, Portmans, Just Jeans, JayJays and Dotti are dragging on earnings.

    While those brands make up a reducing portion of sales – 60 per cent in 2016/17 – the analysts said the risks facing the businesses “hold us back from turning more positive” on Premier Investments.

    “The structural challenges are intensifying as international retailers expand into regional Australia and as Amazon sets up direct retailing in the country – apparel is a category that is susceptible to online competition,” the analyst team led by John Stavliotis said in a note.

    They do not expect a sharp rebound in sales from those brands because of the challenging consumer environment, and predict a stabilisation, with risks remaining in the medium term.

    Premier Investments shares fell almost seven per cent in the two days after the company released its financial results, and dropped a further two per cent, or 25 cents, to $12.58 on Wednesday.

    Morgan Stanley analysts warned that Premier’s apparel brands Jacqui E, Portmans, Just Jeans, JayJays and Dotti are dragging on earnings.

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  • Myer and Amazon announce deal

    Myer and Amazon announce deal

    Myer will stock Amazon Kindle products in its store and online, after the retailers today announced a new partnership.

    Amazon’s heavily-speculatedventure into Australia, alongside a host of other international brands now entering the market, have been posed as major risks by analysts to the 117 year old department store chain retailer, amid CEO Richard Umbers’ ambitious turnaround plan for the business.

    Today’s announcement sees Myer offer a selection of Kindle e-readers and device accessories.

    “We are thrilled to announce our program with Myer, a true icon of Australian retailing,” said Scott Harrington, director of Amazon Device Sales.

    “As the largest department store chain down under, Myer will help make e-reading even more accessible to literature enthusiasts across the nation.”

    “We want to help make it as easy as possible for Australians to delve into a good story. Now that Australians can shop for Kindle e-readers and accessories at Myer, we’re one step closer to that goal.”

    Dain Friis, Myer group general manager home and entertainment, said the “collaboration is a natural fit for us.”

    Earlier this month, former cross-border supply chain manager at Amazon, Brittain Ladd, said the US giant will begin its Australian entry with  a “basic model in terms of staging.”

    Temple & Webster CEO Mark Coulter said he’ll “probably” partner with Amazon in a panel discussion.

    Adairs CEO Mark Ronan is reviewing the possibility of bringing his company’s range of high-end Manchester to Amazon’s platform.

    Amazon itself has begun discussions with suppliers, with former Appliances Online head of buying Fabio Bertola having been brought on to oversee the rollout of marketplace.

    Meanwhile Myer boss Richard Umbers remains committed to his “wanted brands” strategy despite the retailer suffering a $46 million hit from the collapse of its Topshop experiment and continuing pain from fashion label sass & bide.

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  • Myer expands accessory offering

    Myer expands accessory offering

    Millers, Katies and Rivers owner Specialty Fashion has almost quadrupled its full-year loss to $8.39 million, from last year’s $2.19 million, amid subdued consumer spending.

    Revenue fell 2.1 per cent to $808.9 million for the 12 months to June 30 with comparable sales down two per cent on a year ago due to heavy discounting.

    Underlying earnings before interest, tax, depreciation and amortisation (EBITDA), excluding impairments associated with the store exit costs of City Chic USA stores, rose 6.6 per cent to $26.7 million, but comparable store sales across the group declined 2 per cent for the year ended 30 June.

    A return to positive EBITDA growth at Rivers and strengthening sales for City Chic was offset by negative growth in the Millers, Crossroads, Autograph and Katies brands, with total group sales slipping 2.1 per cent to $808.9 million.

    Gross margins improved by 0.4 per cent through the year, but CEO Gary Perlstein has signalled intensifying promotional activity in the first weeks of FY18, which is expected to continue.

    The company gave no specific guidance, but said that there have been no additional discussions with prospective group buyer Al Alifia group since it signalled that an estate bungle was preventing it from transacting the prospective acquisition in February.

    $7.4 million in exit costs and impairments were recorded in relation to a decision to close City Chic’s US stores, with strengthening presence in department stores such as Macy’s and Nordstrom “removing the necessity for City Chic standalone stores”.

    “Depite it being a difficult trading enviroment, the improved EBITDA for the year was delivered through our core continuous business improvement strategy. This strategy focussed on profitability growth across all facets of the business, underpinned with a determination to control and reduce costs of doing business wherever possible,” Perlstein told the market on Tuesday morning.

    “Our clear focus for the year was the turnaround of Rivers to a profitable brand, and we successfully achieved this. City Chic was also a standout and continues its positive trajectory both locally and internationally. Our mature brands, including Millers, Katies, Crossroads and Autograph continued their growth in online sales, however found trade challenging,” he continued.

    Online sales increased by 15 per cent to $83.7 million through the year, bringing the total proportion of digital transactions to 10.4 per cent on the back of a network wide click-and-collect rollout.

    Weakening in-store sales correlated with 79 closures through the year, offset partially by 30 openings, bringing the total portfolio to 1,044.

    Underlying cost-of-doing business decreased by $7.7 million, but increased slightly as a proportion of sales due to slowing in-store momentum.

    Perlstein said the immediate focus in FY18 will be on “rejuvenating” mature brands within the portfolio, while enhancing the group’s digital position and continuing to grow River’s profitability.

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  • Myer walks away from Topshop concessions

    Myer walks away from Topshop concessions

    At the time of writing, the company still lists the concessions on its website, but local reports said that there is little sign the brand had ever been there inside the 17 Myer stores that carried the women’s and men’s brands.

    The news comes just a few days after it emerged that the Australian Topshop/Topman administrators are closing as many as five of its standalone stores, including the first location the brands opened in the country. Only Emporium Melbourne, Gowings Sydney, Bondi Junction and Brisbane will continue.

    Arcadia has been talking to administrator Ferrier Hodgson since debts of A$35 million led to franchisee Austradia collapsing in May. Myer had bought a 25% stake in the business during 2015, four years after the brands’ Australian debut, and this was diluted to a still-substantial 20% holding last year. In its latest half-year results, Myer had written-down its A$9.2 million stake to A$7.2 million and the firm is also believed to be a major unsecured creditor of the failed business.

    It has also emerged that Austradia’s major shareholder Hilton Seskin had been holding talks with Arcadia about a restructure for some time before the collapse. While he said little at the time of the collapse, he has more recently been quoted criticising Arcadia’s Australian operating model saying the supply chain was too complex and the product made available in Australia, which was controlled by the UK business, was not strong enough.

    Arcadia is still expected to take direct control of the Australian business and reports have said it had been keen to retain the Myer link.

    The administrator has made little comment on the issues surrounding the Topshop and Topman brands but said its priority is still to find an “appropriate operating model and structure” to continue the brands in Australia.

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  • Australia retail sales see surprise rebound in April

    Australia retail sales see surprise rebound in April

    Australia’s retail sales saw a surprise uptick in April, on the back of a revenue rebound across department stores, including David Jones and Myer, and strong sales in cafes and restaurants.

    According to the data released by the Australian Bureau of Statistics (ABS), retail spending rose 1 per cent – the biggest monthly gain in close to three years – to $AU25.89 billion, surpassing market expectations of a 0.3 per cent rise.

    It’s a sound recovery for the Australian retail market, after a weak two months. Revised ABS data showed that retail sales fell 0.2 per cent in March and were flat in February.

    Cafes, restaurants and fast food sales were up 1.1 per cent in April, said the ABS, and food retailing rose 1.2 per cent. Department store sales were 2.5 per cent higher, it said.

    However, other categories merely inched forward. Sales growth in clothing and footwear was 0.3 per cent while household goods rose 0.4 per cent after falling for two straight months.

    By state, retail sales were up 2.4 per cent in Queensland after five consecutive months of falls as households replaced cyclone- and flood-damaged possessions, following Cyclone Debbie.

    Retail sales in New South Wales, Australia‘s most populous state and home to its most expensive real estate including Sydney, rose 0.1 per cent.

    Australian retail sales have been subdued over the past year or so at a time when wages growth is stuck at a record low 1.9 per cent.

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  • Myer signs We Are Kindred to exclusive one-year deal

    Myer signs We Are Kindred to exclusive one-year deal

    Australian department stores giant Myer has signed growing local fashion label We Are Kindred to its roster. The three-year-old label has been signed up for an initial one-year deal with the retailer saying that two seasons are the minimum time it needs to judge a label’s appeal.

    Founded by Georgie Renkert, a fashion industry veteran, and her sister Lizzie, the latter said the We Are Kindred strategy was always to link-up with a major name retailer and they feel that the firm is ready for the increased scale this will mean in terms of logistics.

    She told the Sydney Morning Herald that Myer has “a good strategy in place for launching emerging brands like ours. We’re not a brand that they have.”

    The move comes as the Australian department store space gets increasingly competitive in terms of brands being signed to exclusive deals. Myer is also investing in its own Maticevski label and opening concessions for French brand The Kooples and Zadig & Voltaire. Meanwhile, in the past fortnight, major Myer rival David Jones has struck deals with well known labels Aje and By Johnny.

    Both Myer and David Jones are facing tough times and are positioning themselves to compete with a raft of international newcomers as well as with each other. More international fashion retail giants are opening in their market and the arrival of Amazon in Australia also means the stakes have been raised for online fashion and homewares retail there.

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  • Myer may be planning to close stores

    Myer may be planning to close stores

    Australian retail giant Myer could close seven stores to help reignite sales growth, analysts say.

    The department store chain has a number of underperforming stores that could be closed to simplify the business and improve its financial performance, Citigroup analysts said.

    Myer has 67 stores across Australia, mostly in capital cities, but also in regional centres including Bendigo, Ballarat, Dubbo, Orange, Wagga and Mackay. Sales could also be boosted by lifting staff numbers and spending more on marketing, the Citi analysts said.

  • New Myer team to embark on transformation

    New Myer team to embark on transformation

    Myer shareholders are bracing for a sharp fall in earnings and big asset write-downs and provisions over the next few years as the new management team embarks on a multi-year transformation plan to reshape the 115-year-old department store chain.

    Analysts and investors believe the new team, led by former Woolworths and Australia Post executive Richard Umbers, needs to spend at least AUD150 million (USD117m) over the next three years, on top of underlying spending of AUD30 million a year, to reverse the effects of years of underinvestment in e-commerce, IT, service and stores.

    Myer’s earnings could fall by as much as 12 percent in 2016 because the investment will precede any significant rebound in sales, squeezing margins.

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