Myer Holdings Ltd (ASX: MYR)

Resurging post facing immense pressure: Myer Holdings Ltd (ASX: MYR) has been recently pulled down by the Veteran retailer Solomon Lew (of Premier Investments), who criticized the group’s management for not indicating any profit downgrade or a write-down on the value of its investment in Topshop. On the other hand, the group has been on track to deliver as per its New Myer Strategy to withstand the ongoing weak retail trading conditions. The group’s FY17 performance, however, fell short of expectations as their metrics that mattered moved at a sluggish pace than expected. But the group is trying to become a leaner, more productive and an efficient retailer, and intends to roll out more initiatives especially in their solid performing omni-channel business. The group’s Omni-channel sales which also include sales via their 2,500 iPads in store, reached $177 million during the year which accounted 8.2% of total sales in July 2017. Click & Collect represented 15% of orders in July 2017. Moreover, Myer is targeting a 24,368m² reduction in space from store closures at Wollongong, Brookside and Orange, space handback at Cairns and Dubbo as well as a space hand back of 50% at Queensland DC and over 30% of their support office floorspace.

Following the recent turbulence, the stock moved up 6.9% on September 27, 2017 while Premier Investments Ltd (Myer’s stakeholder) has requested for Myer’s statutory register (register of members and register maintained by Myer under Corporations Act) with regards to any resolution proposed for MYR’s AGM scheduled for November 2017. It will be worth watching the developments on the stock going forward. 

QBE Insurance Group Ltd (ASX: QBE)

Challenging environment for insurer: QBE Insurance Group Ltd (ASX: QBE) has come under the axe of the market with selling sentiments on the rise. The stock has corrected over 19.7% in the last six months (as at September 26, 2017) as the group has not been able to deliver given the challenging insurance markets in North America and Europe, owing to higher than expected claims activity. Further, the group is yet to reveal any solid strategic turnaround plans. The company’s returns on equity do not look strong and the fall in gross written premiums adds to the disappointment. On the other hand, the group reported NPAT growth of 30% to $345m for the half-year ended 30 June 2017. Further, QBE has priced their USD300 million Fixed Rate Senior Notes due at 2023 and to be issued under their USD4 billion Medium Term Note Program.

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