Australia’s Myer cuts profit guidance, writes off Topshop, shares slump

Top Australian department store operator Myer Holdings Ltd gave a profit warning on Thursday after a mid-year sale fizzed and efforts to revive the local arm of British fashion chain Topshop failed, sending its shares to a record low.

The operator of 67 department stores said a yearly stocktake sale in June and July was an "important period of profit generation" but weak trading conditions had persisted, meaning underlying net profit would be as low as A$66 million (39.94 million pounds), compared with its A$69 million guidance in May.

It added that it wrote off its one-fifth stake in the Australian franchisee of Topshop after no agreement was reached on a rescue plan with the franchise owner, Philip Green's Arcadia Group Ltd.