Myer expected to post weak FY results

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Myer will shed more light on its struggle to turn around sluggish sales amid weak consumer spending when it unveils its full-year results on Thursday.

The department store giant suffered a two per cent fall in its crucial comparable sales in the third quarter and, back in May, forecast “challenging trading conditions” to continue.

Fierce rival David Jones last month called out falling consumer confidence as a major factor behind its 0.7 per cent fall in full-year comparable sales.

Citi analyst Bryan Raymond wrote in a note that the second half was tough for David Jones and that Myer would likely have had a weaker performance.

Myer announced in July that it will take a total $45.6 million hit after writing off the value of its 20 per cent stake in Topshop’s Australian franchisee and impairing the value of its struggling sass & bide brand.

The retailer had previously expected net profit to exceed 2016’s $60.5 million but the writedowns and another $20 million of costs are expected to weigh.

The company expects underlying net profit to be in the range of $66 million to $70 million.

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