SYDNEY — Myer Holdings Ltd. was the biggest mover on the ASX 200 exchange on Wednesday, with its shares surging more than 10 percent in trading after the company reported a 2.4 percent rise in third-quarter sales.
The shares ended the day up 14.5 cents or 10.3 percent at 1.555 Australian dollars or $1.236.
The 67-unit Melbourne-based chain, which is Australia’s biggest department store, reported total sales of 661.8 million Australian dollars for the 13 weeks to April 25 2015, or $515.9 million over the period, up 2.4 percent on the previous year, with same-store sales up 1.7 percent.
Year-to-date sales were up 1.7 percent to 2.43 billion Australian dollars or $1.89 billion and same-store sales were up 1.1 percent.
Myer said that in spite of subdued trading in Western Australia and Queensland, the results had been boosted by four major store refurbishments and two new stores in Brisbane and Perth that were opened prior to Christmas 2014, as well as “continued strong growth” in the online business.
Myer is currently undergoing a strategic review, with more details to be unveiled “in due course” the company said.
“It was the best quarterly update since Q2 2014 – like-for-like sales having a 1.7 percent improvement hasn’t been seen for three quarters, so that’s a positive and there is also very much a positive with the revenue increase of 2.4 percent” said IG market strategist Evan Lucas. “It’s back to the same share price it was on the 18th March. [New chief executive officer] Richard Umbers has now recouped that and a little bit more”.
Myer was among of a number of Australian retail stocks to surge on Wednesday, on the back of Tuesday evening’s announcement of the Abbott government’s Federal Budget 2015, notably a 5.5 billion, or $4.4 billion, small business package.
The unveiling of an immediate 100 percent tax write-off for Australia’s two million small businesses which earn less than 2 million Australian dollars per annum, or $1.6 million, on an unlimited number of asset purchases valued up to 20,000 Australian dollars, or $15,890, is expected to prompt a sales rush at electronics retailers, car importers, industrial suppliers – even art galleries.