Myer’s share price surged 10 per cent yesterday on the back of the troubled retailer announcing its third quarter sales were up 2.4 per cent to $661.8 million. Myer’s total sales for the year are now up 1.7 per cent, to over $2.4 billion.
Investor confidence in Myer, and other retailers, yesterday can also be attributed to Tuesday’s Federal Budget that handed down significant tax benefits to small businesses. A new measure outlined in the Budget allows registered businesses, with an annual turnover of less than $2 million, to claim an unlimited number of tax deductions on business-related assets up to the value of $20,000. In his Budget speech, Treasurer Joe Hockey said he hoped small businesses would go out and purchase items like appliances under the scheme.
Myer shares closed on Wednesday up 14.5 cents, or 10.28 per cent, at $1.555 and were part of an upward trend in retail stocks after the Budget announcement.
Myer said the third quarter rise was due to strong online sales, full contributions from four of its stores that were partially closed for refurbishment and two new stores that were established pre-Christmas 2014.
The numbers could have been even better had it not been for subdued trading conditions in Western Australia and Queensland during the quarter.