Myer has been accused of making a "cloud cuckoo land" forecast, as a class action against the department store begins.
The Federal Court case commenced yesterday, on behalf of shareholders who claim financial loss due to unreliable guidance given in 2014.
In that year, former CEO Bernie Brookes told investors profit would grow in 2015, despite his own board ruling that such guidance was not reliable.
QC Norman O'Bryan told the Federal Court in Melbourne that a draft 2014 full year earnings ASX release did not include a profit forecast.
However, in speaking to media and analysts, Brookes confirmed expected profit growth.
This was despite a 22% fall in profit during fiscal 2014, as well as a 15% fall in trade for the first quarter of 2015.
O'Bryan said the idea of a 23% jump in profit during the second quarter, a key time for retailers in Christmas trading, was a "cloud cuckoo land" assumption.
By March 2015, replacement CEO Richard Umbers announced profit would fall to $75 million for the year, causing a sharp dive in Myer's share price.
Brookes is expected to give evidence in the trial.