Updated July 20, 2017 13:58:42

Photo: Myer shares plunged to a record low of 73.5 cents this morning. (ABC Central West: Melanie Pearce)

Myer Holdings is having its worst day on the stock market - ever.

It is also sitting in last place on Thursday morning, as the worst performing stock on the ASX 200.

Shares in the department store company plunged by 10 per cent to a record low of 73.5 cents this morning.

Investors dumped their Myer shares after the company released an announcement to the market containing several items of bad news.

These include a profit downgrade, the sudden departure of its deputy CEO Daniel Bracken, and write-offs for its Topshop, Topman and sass & bide assets.

Profit downgrade

The company has cut its after-tax net profit forecast (for the 2017 financial year) to a range between $66 million and $77 million - excluding "pre-implementation costs and significant items".

Those pre-implementation costs will be between $18 million and $20 million.

Back in May, Myer had forecast a slightly more optimistic profit that would be "higher than $69.3 million".

As for the reason behind the profit downgrade, Myer cited "continued weakness in retail trading conditions."

The significant items weighing on Myer's balance sheet are its investments in a number of troubled fashion brands.

Fashion troubles

The company has decided to write down the full carrying value of its 20 per cent stake in Austradia Pty Ltd - the local franchisee of British fashion retailer Topshop.

Myer and David Jones have been stuck in the headlights of huge structural changes in retail since last year. Andrew Robertson explains why.

Austradia previously appointed voluntary administrators in May.

The company also said it had been "unable to secure a deal on acceptable commercial terms" with Arcadia Group (the UK-based parent company which owns Topshop) to "allow for the continuation of Topshop/Topman concessions in Myer".

In regards to sass & bide, Myer said the fashion brand "has been challenged during the past year" and, despite its best efforts, there will be a $38.8 million impairment on the struggling label.

Deputy CEO resigns

Myer did not provide a reason why Mr Bracken left the company.

Mr Bracken also held the role of chief merchandise and customer officer.

He worked for Myer over the past two-and-a-half years, and was credited by the company with playing "an instrumental role in developing New Myer" (which is Myer's turnaround strategy) and the "introduction of new brands to Myer".

Topics: retail, company-news, business-economics-and-finance, australia

First posted July 20, 2017 12:43:23