The top contributing stock for both the quarter and six-month period was Myer Holdings (MYR
), Australia’s largest department store group. Myer performed well during the holiday season, and as a result, its second-quarter sales rose 2.1%. The company has reported nine straight months of positive comparable sales growth, a very encouraging trend. Myer has invested in systems, has done a very good job reducing costs, and is continuing to drive its highly profitable Myer Exclusive brands. The company is now focused on profitably growing the top line and making Myer a more competitive retailer. It is working to optimize product mix and space through refurbishing its stores and through ongoing changes, such as investing in service, improving its merchandise offerings, bringing its pricing in line with international levels, and providing a more credible online experience. We remain optimistic that Myer will continue to grow shareholder value over the long term.
From David Herro
's Oakmark International Small Cap Fund First Quarter 2013 Commentary.