Broker Ord Minnett has weighed in on the outlook of two well known retailers: Universal Store Holdings Ltd (ASX: UNI) and Myer Holdings Ltd (ASX: MYR).
These two companies have performed very differently this year. Myer shares have fallen 65.45% in 2025. Meanwhile, Universal shares have risen a healthy 9.38%.
Last week, broker Ord Minnett adjusted its outlook for both consumer discretionary shares.
Lets see what the broker had to say.
Image source: Getty Images
Universal Store Holdings Ltd (ASX: UNI)
Ord Minnett noted that Universal's second half 2025 net profit after tax (NPAT) was approximately 2% below consensus expectations.
However, the broker also said the first half 2026 year-to-date trading update was tracking about 7% ahead of consensus.
Despite this, Ord Minnett has cut its EPS forecasts for FY26–28 by 4–6% to reflect management's guidance that sales comparisons will become more challenging in the remainder of FY26.
Universal will continue to reinvest in the business, prioritising long-term growth over short-term profits. With a $17 million net cash position, expected 10% per annum EPS growth over two years, and further market share opportunities as competitors exit.
Based on this guidance, Ord Minnett has retained its 'Accumulate' rating on Universal Store shares. It has reduced its price target to $9.60 from $9.80.
Based on yesterday's closing price of $8.86, this still indicates upside for Universal shares of approximately 8.36%.
Myer Holdings Ltd (ASX: MYR)
Ord Minnett noted that Myer's FY25 net profit of $36.8 million was well short of expectations.
The broker also said the company did not declare a final dividend, as surprisingly high costs of doing business (CODB) for the department store chain erased any benefit from a rebound in like-for-like (LFL) sales growth in the second half.
The broker is also wary of costs increasing further.
We estimate the step up in CODB in FY26 will be embedded in its cost structure at circa $15–-20 million on an annualised basis rather than being just a short-term hit.
We have made deep cuts to our EPS forecasts– by 30.1%, 20.7% and 14.4% for FY26, FY27 and FY28, respectively.
The broker has cut its recommendation to 'Hold' from 'Accumulate' on Myer shares and reduced its price target to $0.67 from $0.86.
Based on yesterday's closing price of $0.42, this indicates a significant upside of 59.52%.
However, the broker said despite the apparent value in Myer there are significant risks from the Apparel Brands integration and the retailer faces a difficult task in growing LFL sales on a sustainable basis.
