Myer Holdings (ASX:MYR) has scrapped its final Dividend after reporting a statutory net loss of $276.5 million for the 2026 financial year. The department store group, a member of the All Ordinaries index, booked impairments of $279.6 million against goodwill, Brand intangibles and store assets, turning what was a modest Underlying Profit into a large headline loss.

The decision reflects a combination of weaker second-half trading, pressure on margins and caution about the months ahead. Executive chair Olivia Wirth pointed to a material downturn in consumer sentiment and weak discretionary spending, and the board chose to preserve cash rather than pay a final distribution.

What Myer reported

Myer released its results for the year to 26 July 2026 on 23 September. Total sales rose 11.3 per cent to $4.09 billion, with the increase largely reflecting a full year of contribution from the Apparel Brands Business Myer acquired from Premier Investments in March 2025. Comparable sales grew a more modest 0.7 per cent.

Underlying Earnings before interest and tax fell 7 per cent to $139.4 million. The reported that underlying net profit after tax was $42.5 million, about 3 per cent lower than the prior year. After the Impairment charge and other one-off costs, the group swung to the statutory loss of $276.5 million.

Operating Gross Profit fell 1.6 per cent on a pro forma basis to $1.60 billion, with the gross Margin compressed to 39.2 per cent. reported that the retailer ran higher-than-planned promotional activity to drive sales, which weighed on profitability alongside Investment in strategic initiatives.

Why the dividend was scrapped

The board declared no final dividend. The reported that the full-year payout therefore remains at the 1.5 cents per share interim dividend, which was paid in May.

The impairment itself is a non-cash charge, meaning it does not directly drain Myer's bank account. However, it reflects a reassessment of the value of Assets on the balance sheet, including Goodwill and brand intangibles, in light of tougher trading and a more uncertain outlook. When a company records a large statutory loss and flags caution about consumer spending, retaining cash can give it more flexibility. Myer's board has not indicated when final dividends might resume, and future payments are likely to depend on how trading and cash generation evolve in FY27.

Myer ended the year with net cash of $100.1 million, and subsequently increased its Debt facilities to $200 million while extending Maturity dates to improve liquidity. Keeping the final dividend back is consistent with that emphasis on Balance Sheet flexibility.

What management said

The Apparel Brands factor

The Acquisition of Apparel Brands, whose brands include Just Jeans, Jay Jays, Dotti and Portmans, transformed the scale of Myer's business and underpins the headline sales growth. Solomon Lew, whose Premier Investments sold the brands to Myer, is the group's largest Shareholder with a stake of about 30 per cent and has joined the board as a non-executive director, according to the.

In a July trading update Myer said it had closed 38 underperforming Apparel Brands stores during FY26 while opening 14 new locations. reported that Myer is targeting annualised Apparel Brands synergies of at least $30 million from the 2028 financial year, with about $10 million expected from FY27 after integrating sass & bide, Marcs and David Lawrence. Delivering those savings will be important if sales growth remains subdued.