Australia's Myer hits near 2-week peak as Morningstar eyes margin gains

Myer Holdings

11/12/2025 23:54

Updates

** Shares of Myer Holdings MYR.AX rise as much as 4.4% to A$0.47 in early trade, their highest since December 1

** Morningstar maintains fair value estimate on the clothing retailer at A$0.83

** Co on Thursday posted a 3% jump in total sales for first 19 weeks of 2025

** Investment research firm expects underlying EBIT margin for Myer to expand 180 basis points to a long-term level of 5.6% from fiscal 2028

** Morningstar says market fears margin erosion, but expects co to offset decline via store footprint optimization and online sales growth (up mid-single digits so far)

** Forecasts FY26 sales growth at 3%, tapering to 1% from FY27 amid structural decline in department store appeal

** Stock down 61% YTD, including the day's moves

 (Reporting by Roshan Thomas and Nikita Maria Jino in Bengaluru)

 ((Roshan.Thomas@thomsonreuters.com))