Myer Holdings Ltd (ASX: MYR) shares are surging on Tuesday. At the time of writing, the Myer share price is trading 9.46% higher at 40.5 cents.
The embattled retailer has not announced any price-sensitive news since its half-year results back in March.
Let’s take a look at what else might be propping up Myer shares.
Is this driving the Myer share price?
According to a report published late yesterday by the Australian Financial Review (AFR), Solomon Lew has been buying up Myer shares through Premier Investments Limited (ASX: PMV).
On Monday, Myer recorded more than 40 million shares changing hands, or approximately 5% of its 819.9 million shares outstanding.
Lew is the chair and largest shareholder of Premier Investments which, up until yesterday, already held a 10% stake in Myer.
According to the AFR, “Premier Investments is understood to be keen to increase its stake, to once again seek to bring about change at the struggling retailer.”
A comeback in the making?
Surprisingly, the Myer share price has rallied more than 14% in the new financial year, reaching an 18-month high of 42.5 cents in intraday trading today.
The company’s share price was also a solid performer in FY21, lifting 92% from 18.5 cents to 35.5 cents by 30 June.
Looking back at Myer’s half-year results, the company flagged a 13.1% decline in sales to $1,398 million, driven by store closures and reduced CBD footfall.
Its comparable CBD store sales were far worse, down 32.2% due to a restricted CBD workforce, reduced tourism and subdued confidence from continued lockdowns.
On a more positive note, Myer’s online division delivered $287.6 million in sales for the half-year, up 71.0% against the prior corresponding period.
The company said that its online sales provides “a strong platform to drive further growth and remains [a] focus of future investment”.
The post Why the Myer (ASX:MYR) share price is up 9% today appeared first on The Motley Fool Australia.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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