Myer denies breaching market rules

Myer bagMyer has defended the timing of its profit downgrade, saying the market was told about weaker than expected earnings as soon as possible.

The retailer last week lowered its full year profit forecast to between $75 million and $80 million, well below market expectations of a $90 million profit and the previous year’s $98.5 million result.

The news sent Myer shares down 10 per cent, and analysts questioned why the new, weaker forecast wasn’t provided when Myer announced the appointment of new CEO, Richard Umbers, a fortnight earlier.

Share market operator ASX has also asked for more detail from Myer about the timing of the announcement, and whether the retailer believes it breached disclosure rules by withholding information from investors.

But Myer has told the ASX its board only decided to revise the profit forecast the day before the company released its half year results.

“Myer only became aware of the need to update the market on its expected FY2015 results late on the day before the scheduled announcement of the H1 FY2015 results,” Myer told the ASX.

The company issued the new guidance before the market opened the next day, meaning it has not breached disclosure rules, Myer said.

Myer shares gained half a cent to $1.355 on Tuesday, still well below the $1.53 they were trading at ahead of the profit downgrade.

AAP

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