Myer is set to unveil a first-half profit plunge of at least 35 per cent as it battles falling sales and a push by its biggest shareholder to overthrow the board.
The embattled department store chain, which is reportedly considering former David Jones boss Paul Zahra as the successor to departed chief executive Richard Umbers, will announce the results on Wednesday having already said it expects net profit to fall by between 35 and 41 per cent.
Myer flagged a 3.6 per cent slump in sales for the six months to January after sharp falls in sales during the key December and January trading months.
It said it expected a profit of between $37 million and $41 million, down from $62.8 million for the same period last year.
The results are likely to prompt further ire from Myer's largest shareholder, retail veteran Solomon Lew.
Mr Lew, whose Premier Investments has lost $63 million on Myer since taking an 11 per cent stake a year ago, has been highly critical and is set on calling an extraordinary general meeting to oust the entire board.
One of the major concerns for investors is Myer's debt levels, analysts have said.
UBS analysts have said it would only take a two to three per cent sales miss for Myer to be at risk of breaching lenders' conditions either in the second half of the current financial year or in the following year.
International entrants including Zara, H&M, Sephora and Uniqlo have lured customers away from department stores and increased pressure on margins.
Rival department store David Jones is also showing the strain with its first-half profit down 39 per cent on a year ago.
Its South African parent company, Woolworths Holdings, last month wrote down the value of the David Jones by $713 million due to challenges facing the retail industry.
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