Key Highlights

• Myer reported a statutory net loss of A$276.5 million, weighed down by A$279.6 million of impairments across goodwill, Brand intangibles.

• Underlying net profit after tax, however, came in at A$42.5 million, down only 2.9% on an actual basis.

• The company also reported that comparable sales at its Myer Retail Business had grown 1.8% in the first eight weeks.

Myer Holdings Ltd (ASX:MYR) jumped on Wednesday after the department store group released its FY26 result, with investors appearing to look past a large statutory loss driven by writedowns and focus instead on underlying Earnings and early FY27 trading.

Myer reported a statutory net loss of A$276.5 million, weighed down by A$279.6 million of impairments across goodwill, brand intangibles and stores. Underlying net profit after tax, however, came in at A$42.5 million, down only 2.9% on an actual basis. The company also reported that comparable sales at its Myer Retail business had grown 1.8% in the first eight weeks of FY27. Whether the turnaround is gaining traction remains an open question, with Apparel Brands still under pressure and no final Dividend declared.

Business snapshot: department stores plus apparel brands

Myer is one of Australia's best-known department store operators, selling fashion, beauty, homewares and electrical goods through its store network and online channel. The group was reshaped by the Acquisition of Premier Investments' apparel brands business, which brought specialty chains such as Just Jeans into the fold and created two segments: Myer Retail and Myer Apparel Brands.

The deal also made retail veteran Solomon Lew a major shareholder, with a stake of around 30%. Lew is rejoining the board as a non-executive director from 24 September 2026.

What the FY26 numbers show

For the 52 weeks to 25 July 2026, total sales were A$4.09 billion, up 11.3% on a reported basis thanks to a full-year contribution from Apparel Brands. On a comparable, pro forma basis, sales grew just 0.7%. Myer Retail sales rose 0.7%, while Apparel Brands sales fell 1.3%, although Just Jeans grew sales by 6%.

Operating Gross Profit was about A$1.6 billion, up 14% on an actual basis, and the cost of doing business was about A$1.2 billion. Underlying EBIT fell 7% on an actual basis to A$139.4 million, and 23.5% on a pro forma basis. Underlying net profit after tax was A$42.5 million, down 2.9% on an actual basis and about 32% on a pro forma basis.

The statutory result was far weaker. Total one-off writedowns and expenses reached A$319 million, including A$279.6 million of impairments, producing a statutory net loss of A$276.5 million. Myer did not declare a final dividend, so the full-year payout was limited to the 1.5 cent Interim Dividend paid in May.

Why Myer shares jumped

The rally came from a low base. That update had already disclosed full-year sales and flagged a decline in operating gross Margin to around 39.2%–39.3% from 40.3%.

With sales and margin pressure largely known, attention on results day turned to the size of the writedowns, the Underlying Profit line and current trading. Underlying net profit held close to the prior year on an actual basis, and the early FY27 trading update showed group comparable sales up 0.2% over the first eight weeks, led by Myer Retail's 1.8% comparable growth. The impairments, while large, are non-cash accounting charges. Together these factors appear to have supported the share price rebound, although Rask Media noted there were not many "exciting numbers to report".

Is the turnaround gaining traction?

Executive Chair Olivia Wirth said the second half of FY26 was "characterised by a volatile and significantly more challenging macroeconomic and retail environment", citing a material downturn in consumer sentiment and weak discretionary spending. Management described early FY27 trading as uneven.

On the positive side, Myer Retail's early comparable growth suggests the core department store is holding its ground. On the negative side, Apparel Brands comparable sales fell 5.9% in the first eight weeks of FY27, and actual group sales were down 2.7%. The company has already taken steps to simplify the brands portfolio, including closing Sass & Bide and cutting management roles across its apparel businesses earlier in 2026. For FY27, Myer is targeting a cost of doing business of about 29% of total sales, in line with FY26.

Why it matters for All Ordinaries investors, and the risks

Myer is a bellwether for Australian discretionary retail. Its results offer insight into consumer spending across fashion, beauty and household goods, and its trading update arrives at a time when investors are looking for evidence on how households are responding to cost-of-living pressures.

For investors assessing the stock, the main risks include further weakness in discretionary spending, continued pressure on gross margins from discounting, and the challenge of integrating and turning around the Apparel Brands business. The latest impairments show that the carrying value of acquired Assets has already been reduced, and further writedowns cannot be ruled out if trading deteriorates. The absence of a final dividend also removes a source of return for income-focused holders. Board changes and the influence of a large Shareholder may shape strategy.

What investors may watch next

Near-term catalysts include Solomon Lew's return to the board on 24 September 2026, the company's annual general meeting, where a further trading update is likely, and the key Black Friday and Christmas trading period. Investors are likely to focus on whether Myer Retail's comparable sales growth holds, whether Apparel Brands stabilises, progress on integration savings and whether gross margin recovers from FY26 levels.

The bottom line

Myer jumped at midday on Wednesday 23 September 2026 as investors weighed a large, mostly non-cash statutory loss against steadier underlying earnings and positive early comparable sales at Myer Retail. The turnaround is showing some traction in the core department store business, but Apparel Brands and the broader consumer backdrop remain significant hurdles for this All Ordinaries retailer.