Key Highlights

  • Underlying net profit after tax fell 2.9 per cent to $42.5 million, and 32.1 per cent on a pro forma basis.
  • A one-off, non-cash, post-tax Impairment of $279.6 million resulted in a statutory net loss of $276.5 million.
  • The retailer declared no final dividend, and ended the year with net cash of about $100 million.
  • Because Myer Group's FY25 result included only six months of Myer Apparel Brands, the company presents both actual and pro forma comparisons.

Myer Holdings Limited (ASX:MYR) has reported its FY26 results, showing a Business that grew sales on a comparable basis but came under profit pressure as a volatile second half, heavier discounting and strategic Investment weighed on earnings. Total sales for the 52 weeks to 25 July 2026 rose 11.3 per cent on an actual basis to $4,088.8 million, helped by a full year's contribution from Myer Apparel Brands, and 0.7 per cent on a comparable basis.

Underlying net profit after tax fell 2.9 per cent to $42.5 million, and 32.1 per cent on a pro forma basis. A one-off, non-cash, post-tax impairment of $279.6 million resulted in a statutory net loss of $276.5 million. The retailer declared no final dividend, and ended the year with net cash of about $100 million.

The key numbers

Because Myer Group's FY25 result included only six months of Myer Apparel Brands, the company presents both actual and pro forma comparisons. Pro forma figures include 12 months of both businesses in each year for a like-for-like view. The main FY26 figures were:

Total sales: $4,088.8 million, up 11.3 per cent actual, up 0.3 per cent pro forma, comparable sales up 0.7 per cent

Operating gross profit: $1,603.2 million, up 14.0 per cent actual, down 1.6 per cent pro forma; Margin of 39.2 per cent

Cost of doing business: $1,189.7 million, or 29.1 per cent of sales, in line with the target of about 29 per cent

Underlying EBITDA: $413.5 million, up 7.9 per cent actual, down 12.1 per cent pro forma

Underlying EBIT: $139.4 million, down 7.0 per cent actual, down 23.5 per cent pro forma

Underlying NPAT: $42.5 million, down 2.9 per cent actual, down 32.1 per cent pro forma

Statutory NPAT: loss of $276.5 million, compared with a loss of $204.4 million in FY25

Myer said pro forma operating Gross Profit was lower because of growth in lower-margin categories and higher than planned promotional activity to stimulate Demand in the second half.

Impairment, Dividend and balance sheet

The statutory loss reflects the $279.6 million post-tax impairment, which the company said relates to goodwill, Brand intangibles and store impairment across the group. The investor presentation shows impairment charges of $208.5 million against brands and $74.6 million against goodwill, along with $71.0 million relating to stores.

No final dividend was declared. Shareholders received a fully franked Interim Dividend of 1.5 cents per share in May 2026, representing a Payout Ratio of 60 per cent for FY26.

On the balance sheet, Myer reported net cash of $100.1 million at 25 July 2026, down from $168.1 million a year earlier. Operating Cash Flow rose to $263.2 million and free cash flow increased to $213.0 million. After year-end, Myer increased its Debt facilities to $200 million, all undrawn as at 22 September 2026, and extended the Maturity of $100 million from FY28 to FY30.

How the two segments performed

Myer Retail, the department store business, grew total sales 0.7 per cent to $3,328.8 million, with comparable sales up 1.0 per cent. Growth came from Women's Fashion (up 4.7 per cent), Home (5.6 per cent), Kids (4.6 per cent), Concessions (8.2 per cent) and Marketplace (5.8 per cent), offset by lower Beauty sales. The segment result fell 3.5 per cent to $415.2 million.

Myer Apparel Brands, which includes Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E, recorded pro forma sales of $760.0 million, down 1.3 per cent, with comparable sales 0.3 per cent lower. Just Jeans grew 6.0 per cent, but other brands were softer, particularly Portmans. Its segment result fell 3.3 per cent to $143.3 million on a pro forma basis.

A tough second half

Myer said, as it had flagged in July, that trading was volatile month to month through the second half. It cited cost-of-living pressures including higher fuel prices linked to the Middle East conflict, three Interest Rate increases in calendar 2026, slower household income growth and a weaker housing market. A warmer than average start to winter in most major cities also hurt clothing sales.

Executive Chair Olivia Wirth said: "The second half of FY26 was characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25."

She added: "While we remain cautious about the near-term consumer outlook, we believe that our strategic actions are strengthening the Group's competitive position, resilience and supporting the creation of long-term Shareholder value."

Strategy, synergies and background

Myer, whose first store opened in Bendigo in 1900, combined with Premier Investments' apparel brands in January 2025, forming the Myer Group. In FY26 the company said it delivered about $20 million of synergies from the Myer Apparel Brands integration and is targeting annualised synergies of at least $30 million from FY28. The integration of sass & bide, Marcs and David Lawrence is complete, with annualised synergies of about $10 million from FY27. Its Value Creation program delivered around $17 million of benefits.

The MYER one loyalty program reached a record tag rate of 81.5 per cent in Myer Retail, and active members rose to a record 5.3 million. The company also launched a retail media business and a new Marketplace platform, added new brands including Fenty Beauty, La Mer, Guerlain and GAP, closed 38 and opened 14 apparel stores, and began refurbishing its Sydney City beauty hall.

Early FY27 trading and outlook

For the first eight weeks of FY27, Myer Group comparable sales were flat at up 0.2 per cent, with actual sales 2.7 per cent lower. Myer Retail comparable sales rose 1.8 per cent, while Myer Apparel Brands comparable sales fell 5.9 per cent. The company is targeting FY27 cost of doing business of about 29 per cent of total sales.

Ms Wirth said trading in early FY27 "has remained uneven, with softer conditions experienced in August followed by improving trading momentum through September, despite recent challenges in global shipping." She added that Myer expects Volatility in consumer behaviour and discretionary spending to continue over the next 12 months.

Key risks for investors in ASX retail shares include the path of interest rates and household budgets, continued promotional intensity, execution of the apparel integration and the performance of weaker apparel brands.

The bottom line

Myer's FY26 result shows modest comparable sales growth but lower Underlying Profit on a like-for-like basis, a large non-cash impairment and no final dividend. The Balance Sheet remains in net cash with expanded facilities, while management has signalled caution on the consumer over the year ahead.