Solomon Lew ups pressure on Myer’s incoming chair ahead of strategy day

Despite Solomon Lew’s shot across the bow, Myer is showing no signs of agreeing to release Q1 data ahead of schedule.

Premier Investments chairman and non-executive director Solomon Lew. (AAP Image/Stefan Postles)

Billionaire retailer Solomon Lew, has ratcheted up the pressure on Myer and its board in the lead up to its crucial strategy day on November 1, demanding an update on first quarter trading and promising to scrutinise any changes made to the “New Myer” strategy launched in 2015.

And in a shot across the bows to incoming Myer chairman Garry Hounsell, Mr Lew’s flagship investment company and the department store operator’s biggest shareholder, Premier Investments (PMV), has said it will closely examine Myers’s (MYR) recent performance and the sustainability of the “New Myer” strategy after Mr Hounsell last week publicly voiced his support of the strategy unveiled by Myer chief executive Richard Umbers in 2015.

“Premier believes that Myer needs to fully inform the market of its Q1 profit and sales performance at its strategy day so that the market can determine whether there has been any progress in addressing the sales and profit decline at Myer,” the statement from Mr Lew’s Premier, which in March bought a 10.8 per cent stake in Myer, said today.

“Q1 will have closed by the time of the strategy day so there will be no need for any delay in releasing these numbers,” the statement ominously warns.

Mr Lew said in the statement he noted Mr Hounsell’s comments there had been “green shoots” emerge in Myer’s trading and was keen to see this unveiled on November 1.

In a statement this afternoon, Myer signalled it would not give in to Mr Lew’s demands to release its first quarter trading performance at the strategy day on November 1.

Rather, the sales and profits for the quarter would likely be issued to shareholders at the AGM in late November.

“As Richard Umbers announced at our full-year result, Myer is now two years in to the execution of the New Myer strategy,’’ a Myer spokesman said.

“We will be holding a strategy day on November 1 to update the market in more depth on the progress we are making and on how we are evolving the strategy to meet present market challenges. The date for the release of Q1 sales has not yet been set — however we note that Q1 sales are usually announced at the same time as the AGM in late November.”

Last month, Mr Lew launched a scathing attack on Myer’s recent performance, its board and what he derided as its very poor retail execution.

The spat led to pressure last week that saw Myer chairman Paul McClintock announce his intention to resign as chairman of Myer ahead of schedule at its AGM in late November to make way for Mr Hounsell.

Mr Lew also asked for a copy of the Myer share register, which he has now received, and might mount a campaign to vote against the election of Mr Hounsell to the board.

This afternoon’s statement from Mr Lew has heightened the pressure around Myer as Mr Umbers prepares to report to investors at a strategy update on November 1.