Morgan Stanley expects Australia's Myer Holdings' performance to improve

Myer Holdings

26/05/2025 24:43

** Analysts at Morgan Stanley expect Myer Holdings MYR.AX to return to growth and margin expansion from FY26

** The department store operator posted a nearly 2% rise in second-half until date (16 weeks) total sales last week to A$837.2 million ($544.35 million)

** Brokerage says margins remain under pressure but headwinds seem to have at least stabilised compared with H1

** Sees upside EPS risk from company initiatives (that is debt refinancing, speciality brand cost-out, etc), as well as, an improving consumer (that is rate cuts)

** Stock down 34.9% YTD

($1 = 1.5380 Australian dollars)

 (Reporting by Sneha Kumar in Bengaluru)

 ((Sneha.kumar@thomsonreuters.com;))