Myer share price: where next following Covid-19 Business Update?

As Australia’s economy grinds to a halt, retailers have been particularly hard hit, with the Myer (MYR) share price falling a staggering 70% in the last month alone.

Myer’s Covid-19 update summarised

At 8:13PM – after the market close on Friday – Myer (MYR) announced that it would be standing down 10,000 team members as a result of the coronavirus (Covid-19) pandemic.

These measures are set to come into effect over the next two days and last for an initial period of four weeks. Though Myer’s physical stores will be shuttering, its online businesses will remain open.

As part of Friday’s market release, the company plainly said that as ‘team members will not be working, they will not be paid during this period of imposed closure.' It was noted at least that ‘Full time and part time members will have greater flexibility to access their annual leave and long service entitlements, in addition to government assistance measures.'

A select group of business critical employees will continue to carry out their duties however, though they will do so at slightly reduced salaries and contact hours.

Management commentary at a glance

Myer’s Chief Executive – John King – took this announcement as a chance to reiterate the good progress that has been made on shoring up the company’s balance sheet and reducing its debt position, in recent times.

‘We are now taking all necessary measures to minimise our cost base, including engaging in ongoing discussions with suppliers and landlords,’ Mr King said.

Myer’s CEO further commented that the ‘decision to temporarily close all Myer stores and stand down so many loyal and dedicated team members is one of the toughest decisions this Company has faced in its 120 years of operation.'

Myer’s Board and its Executive Team – including Mr King – will not receive any renumeration during this closure period.

Myer share price: a volatile month

In the wake of the Covid-19 pandemic, retail stocks have faced particularly heavy selling pressure, as investors seemingly look to dump anything at all leveraged against consumer spending. To illustrate this point, in the last month JB HI FI has seen its share price fall 32.6%, Super Retail Group has dropped 48.3%, Nick Scali has collapsed 57.3% and Kathmandu has seen its stock pushed 66.2% lower.

Unfortunately, Myer has proven to be the worst performing of that bunch: from trading at 35 cents per share on 2 March to just 10 cents per share last Friday, the iconic retailer has seen its stock plummet a monumental 70% in just four weeks.

This precipitous decline is one that has likely displeased some of the markets biggest players. On just 5 March we wrote:

‘Heading into its H1, the renowned investment bank J.P. Morgan was Overweight the retailer, pegging Myer’s fair value at 75 cents per share.’

At the time J.P. Morgan’s price target was well under-water and continues to be so now. To be fair at least, even though the investment bank did lower its price target on Myer to ‘just’ 50 cents between our last piece of coverage on the retailer – J.P.’s revised fair value estimate remains well off the current mark.

Watch this space.

How to trade Myer

What are your thoughts: could Myer’s share price rebound or are there more declines to come? You can trade Myer and other ASX-listed stocks – both up and down – through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) Myer using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘Myer’ or ‘MYR’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.