Key Highlights

  • Myer completed a transformational combination with Premier Investments' Apparel Brands (Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E) in January 2025, issuing 890.5 million new shares (~51.5% of the enlarged register).
  • FY25 (52 weeks to 26 July 2025) delivered total sales of $3,673.8 million but a statutory net loss of $211.2 million, driven by a $213.3 million non-cash goodwill impairment; underlying NPAT was $36.8 million, down 30%.
  • 1H26 (six months to 24 January 2026) showed headline sales growth of 24.5% to $2,279.5 million, yet underlying earnings fell on a pro forma basis and margins compressed.
  • Myer reinstated a fully franked interim dividend of 1.5 cents per share for 1H26; dividends remain discretionary and are not guaranteed.
  • The share price has fallen materially over the past year, trading around $0.255 in mid-June 2026 against a 52-week high of approximately $0.70.

Myer Holdings Limited (ASX: MYR) is no longer just a department store operator. In January 2025 it completed a landmark combination with Premier Investments' Apparel Brands division, folding Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E into the group. Under Executive Chair Olivia Wirth — the former Qantas Loyalty chief appointed to lead Myer in 2024 — the company has reframed itself as a broader "Myer Group." The question for investors is whether this reshaping represents the start of a credible turnaround, or merely a reset to a lower base with a bigger, more complex business to manage.

Recent Financial Performance

FY25 results captured a business mid-transition. Total sales were $3,673.8 million, up 12.5% reported but only around 0.5% on a pro forma basis. The headline was a statutory net loss of $211.2 million, driven by a $213.3 million non-cash goodwill impairment. Stripping that out, underlying NPAT was $36.8 million, down 30%, and underlying EBIT was $140.3 million, down 13.8%. Online sales grew 15% to $818.9 million, and the company finished with net cash of $168.1 million.

The 1H26 result showed the enlarged group in fuller shape. Total sales rose 24.5% to $2,279.5 million on a reported basis — though only 2.1% on a pro forma basis. Statutory NPAT was $40.3 million and underlying NPAT $51.7 million, yet on a pro forma basis underlying NPAT declined around 17% and gross margin compressed. Net cash strengthened to $287.0 million. An early 2H26 trading update covering seven weeks showed Myer Group sales up 1.7%, with Myer Retail up 2.2% and Apparel Brands down 0.4% (though Just Jeans grew 9.8%).

The Apparel Brands Transformation

The combination with Premier Investments' Apparel Brands is the single most important structural event in Myer's recent history. Myer issued 890.5 million new shares — about 51.5% of the enlarged share base — to Premier, which distributed them to its shareholders. Premier's major shareholder Solomon Lew's Century Plaza interests were reported as Myer's largest holder at around 26.8%. The deal targeted at least $30 million in annualised synergies, with a further roughly $10 million flagged from integrating sass & bide, Marcs and David Lawrence. At 1H26 Myer operated approximately 56 department stores and 698 Apparel Brands stores.

Dividends and Shareholder Returns

Myer declared a fully franked interim dividend of 1.5 cents per share for 1H26, at a payout ratio of approximately 50% — a genuine reinstatement of shareholder returns after the FY25 final dividend was not declared. Full franking is attractive for eligible Australian investors. However, dividends remain discretionary and depend on continued earnings and board decisions during a period of heavy transformation spending. Any yield figure is highly sensitive to the current share price, which has fallen substantially; investors should always confirm the current price and latest declared dividends before relying on any quoted yield.

What Investors May Watch Next

Synergy delivery is the most important near-term catalyst: at least $30 million in annualised benefits must be realised on schedule to support earnings in a flat sales environment. Progress on the automated National Distribution Centre — whose ramp-up was pushed beyond the peak trading period at 1H26 — is a live operational watchpoint. The Myer Marketplace platform slated to launch around May 2026 and the continued growth of Myer One (5.1 million active members) are further signals of digital momentum. FY2026 full-year results will be the key test of whether pro forma earnings can recover.

Risks

The most important nuance in recent results is the gap between reported and pro forma performance: headline growth was flattered by consolidating Apparel Brands, while like-for-like underlying earnings fell and margins compressed. Integration execution across a multi-brand portfolio is complex and carries real risk. The National Distribution Centre delay is a live operational concern. Myer is highly exposed to discretionary spending, and cost-of-living pressure and promotional intensity continue to weigh on margins. Governance considerations arise from a concentrated register following the Premier deal. The share price has fallen hard, reflecting genuine market scepticism.

This article is general information only and does not constitute personal financial advice. Investors should conduct their own research and consider their objectives, financial situation and needs.