Highlights

  • Myer (ASX:MYR) reported FY26 total sales of $4.09 billion, supported by the full-year contribution from Apparel Brands.
  • Comparable sales growth remained modest as challenging consumer conditions affected discretionary spending.
  • Loyalty engagement reached record levels, while Marketplace and retail media initiatives expanded growth opportunities.
  • FY26 audited results in September will provide further clarity on profitability and potential significant items.

Myer Holdings (ASX:MYR) provided its FY26 trading update on 27 July 2026, highlighting continued progress across its transformation strategy while acknowledging a more difficult retail environment in the second half of the financial year.

The department store group reported higher sales following the integration of Apparel Brands, while underlying comparable growth remained limited as consumers continued managing cost-of-living pressures. The update highlighted progress across loyalty, product expansion and digital initiatives, but also reinforced the challenges of converting scale into sustainable Earnings growth.

FY26 Trading Update

For the 12 months ended 25 July 2026, Myer reported total sales of $4.09 billion, representing an 11.3% increase on an actual basis.

The increase was supported by the first full-year contribution from Apparel Brands, including Just Jeans, Jay Jays, Portmans, Dotti and Jacqui E.

On a pro forma basis, which provides a like-for-like comparison, total sales increased 0.3%, while group comparable sales increased 0.7%.

Myer Retail comparable sales increased 1.0%, while Myer Apparel Brands comparable sales declined 0.3%.

Performance varied across categories, with growth in Home, Womenswear, Kids, Just Jeans, Marketplace and Concession sales offset by weaker performance in Beauty and Portmans.

The company noted that second-half trading was affected by weaker consumer sentiment, higher living costs, Interest Rate increases, softer housing conditions and lower household income growth.

Profitability Update

Myer expects operating Gross Profit (OGP) for FY26 to be between approximately $1.601 billion and $1.607 billion.

On an actual basis, this represents growth of around 13.8% to 14.3%. However, on a pro forma basis, OGP declined by approximately 2.1% to 2.5%.

Gross Margin is expected to be between 39.2% and 39.3%, compared with 40.3% on a pro forma basis in FY25.

The decline reflects increased promotional activity used to support customer Demand during a challenging retail environment.

Despite lower-than-expected sales conditions, Myer maintained cost discipline, with cost of doing Business percentage broadly aligned with its FY26 target of approximately 29%.

The company has commenced finalisation of its audited FY26 results, including assessment of potential Impairment and significant items. The full-year results are expected in September 2026.

Strategic Progress

Despite trading challenges, Myer continued progressing several strategic initiatives during FY26.

Customer engagement remained a key area of improvement, with Myer One active members increasing to a record 5.3 million compared with 4.7 million in FY25.

The Myer Retail loyalty tag rate reached 81.5%, improving from 79.5% in the prior year, while Apparel Brands achieved a 55.2% tag rate less than one year after joining the loyalty platform.

The company also launched Myer Media Network, a retail media platform designed to use customer data and engagement capabilities to create additional commercial opportunities.

Product expansion continued, with new brands introduced across Beauty, Womenswear and Menswear. Myer secured access to several international brands as part of its broader merchandise strategy.

Digital and Store Strategy

Myer continued investing in its omnichannel strategy during FY26.

The company launched its updated Marketplace platform in June, adding approximately 25,000 products and expanding customer choice without requiring additional inventory investment.

Store network optimisation also continued, with 38 Apparel Brands stores closed and 14 new stores opened during the year.

The company progressed refurbishment activities at selected locations, including improvements to Myer Sydney City and Myer Morley in Perth.

Supply chain initiatives also continued, with the National Distribution Centre project remaining in the proof-of-concept stage as Myer works to manage execution risks.

Integration Progress

The integration of Apparel Brands remains a major part of Myer’s longer-term strategy.

The Acquisition expanded the company’s Brand portfolio and increased its retail footprint, creating opportunities for procurement benefits, operational efficiencies and customer engagement.

Myer continues working towards delivering integration synergies while combining systems, processes and operations across the enlarged group.

The company highlighted value creation initiatives during FY26, including sourcing changes, staffing flexibility improvements and operational restructuring.

Investor Focus

Key areas investors will monitor include:

  • The audited FY26 results expected in September 2026, including final profit outcomes and potential impairment charges.
  • Comparable sales trends and whether consumer spending conditions improve.
  • Progress on Apparel Brands integration and expected synergy benefits.
  • Growth from Myer One, Myer Media Network and Marketplace initiatives.
  • Supply chain improvements and future benefits from operational investments.

Risks

Myer continues facing challenges from a cautious consumer environment and weaker discretionary spending trends.

Higher living costs, interest rates and softer housing conditions may continue affecting customer behaviour.

Margin pressure remains a concern as promotional activity increases to stimulate demand.

The company also faces execution risks related to Supply chain improvements, store optimisation and integration of Apparel Brands.

Future earnings performance will depend on whether strategic initiatives can generate sustainable growth rather than relying primarily on cost efficiencies.

Outlook

Myer enters FY27 with a larger business platform, stronger customer engagement and expanded digital capabilities following the Apparel Brands integration.

The FY26 trading update demonstrates progress across strategic initiatives, but the company continues operating in a challenging retail environment where consumer confidence remains a key factor.

The next major milestone will be the audited FY26 results in September, which will provide further clarity on profitability, Balance Sheet impacts and the effectiveness of the company’s transformation strategy.

For investors following ASX retail stocks, Myer’s future performance will depend on converting increased scale, loyalty growth and operational improvements into sustainable earnings growth.