Myer Holdings, Australia's largest department store chain, said third-quarter sales were "flat" in the absence of government stimulus measures that boosted revenue a year earlier.
Sales for the three months ended April 24 were A$671 million ($840 million), with annual earnings before interest and tax of A$261 million, Melbourne-based Myer said.
As effects of the stimulus payments wanes, Myer needs to report at least flat sales in the fourth quarter to meet forecasts made during its November initial public offering, said Craig Woolford, a Citigroup analyst.
"Myer's third quarter sales performance highlights the large hurdle it will need to pass," Woolford said but affirmed his "buy" rating on the stock.
The company's shares fell 1.6 per cent yesterday to A$3.06. The shares are down about 25 per cent since the company sold them at A$4.10 apiece in the IPO, which raised A$2.1 billion.
Third quarter sales from stores open for at least a year rose 0.3 per cent, Myer said.
Sales for the nine months to April 24 rose 1.4 per cent to A$2.5 billion with same-store revenue increasing 0.9 per cent, the company said.
- BLOOMBERG
Big hurdle ahead for Myer
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