In Myer’s recent interim results, management marked a milestone: ‘We are 18 months into our five-year transformation’. Many of the things we expected when we first upgraded the stock in Is Myer still a pariah? on 11 Nov 15 (Speculative Buy – $0.943) – shortly after management announced the New Myer strategy – have in fact happened.
Earnings declines have abated, while strong cash flow has resumed. Dividends have also recommenced. In fact the 2017 interim dividend was lifted by 1 cent to 3 cents per share, making a total of 6 cents for the past year.