Sell alert! Why this expert is calling time on Myer shares

A leading analyst delivers his verdict on the outlook for Myer shares.

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Myer Holdings Ltd (ASX: MYR) shares ended Thursday well in the red.

Shares in the S&P/ASX 300 Index (ASX: XKO) department store owner closed the day down 3.3%, trading for 44.7 cents apiece.

For some context, the ASX 300 slipped 0.5% yesterday.

Taking a step back, Myer shares are down 51.1% over the past 12 months. And though the company paid an interim dividend of 0.5 cents a share on 20 March, management opted to suspend the final dividend payout amid slumping full year earnings and a 30% year on year decline in underlying net profits.

Yet, despite the share price halving in a year, Medallion Financial Group's Stuart Bromley is still steering clear of the ASX 300 stock (courtesy of The Bull).

Time to sell Myer shares?

"The department store giant delivered disappointing results in full year 2025, in our view," said Bromley, who has a sell recommendation on Myer shares.

According to Bromley:

Sales were weaker than expected. Earnings before interest and tax of $140.3 million, excluding significant items, were down 13.8% on the prior corresponding period. MYR didn't declare a final dividend.

Ongoing cost challenges and pressures on discretionary spending have continued to weigh on investor sentiment.

Citing concerns about those ongoing potential headwinds, Bromley concluded:

The shares have fallen from 96 cents on January 23, 2025 to trade at 48 cents on January 22, 2026. We see risk/reward skewed towards further downside rather than a stabilised rebound in the current cycle.

What's the latest from the ASX 200 retail stock?

The last price-sensitive news out from the company was released on 11 December.

Myer shares closed up 9.8% on the day, spurred by a trading update delivered during the company's annual general meeting (AGM).

Investors responded positively after Myer reported a 3% year on year increase in sales over the first 19 weeks of FY 2026.

"We've had a very encouraging start to FY 2026," Myer executive chair Olivia Wirth said on the day. "We are particularly pleased with the performance of our Myer Exclusive Brands in the Homeware and Womenswear categories, supporting the delivery of the increased sales."

The company's Homewares and Womenswear segments both achieved double-digit sales growth over the first 19 weeks of the new financial year.

On the cost front, Wirth also said that Myer was continuing to target its Cost of Doing Business (CODB) as a percentage of sales target of around 29%. Wirth noted that the company was on track to meet that target for the full FY 2026 year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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