A big day for struggling department store chain, Myer with the shares seeing their best day for months, jumping more than 10% at one stage after its 2018-19 results showed it had seemingly steadied a sinking ship.
The broker is forecasting a -4.9% year on year decline when Myer reports March Q sales this week. Kmart ((WES)) and Big W ((WOW)) have both been investing in price recently and disinflationary pressure is weighing on the broader department store sector, the broker notes.
Macquarie is pleased a new CEO has been appointed reasonably quickly, minimising the potential for leadership disruption. Yet the broker suggests financial capacity limits the investment and turnaround possibilities.