Myer reports 276.50 million dollar statutory net loss for FY26 amid soft consumer demand

Australian department store operator Myer Group (Myer) reported its financial results for the 52 weeks ended July 25, 2026, revealing a statutory net profit after tax loss of 276.50 million Australian dollars (196.39 million dollars).

Underlying net profit after tax reached 42.50 million Australian dollars, down 2.9 percent on an actual basis and 32.1 percent lower on a pro forma basis. Despite challenging macroeconomic conditions, total sales increased 11.3 percent on an actual basis to 4.09 billion Australian dollars, supported by the full 12-month inclusion of Myer Apparel Brands. On a comparable basis, total sales rose 0.7 percent.

Mixed segment performance across retail and apparel portfolios

Myer Retail achieved total sales of 3.33 billion Australian dollars, representing a comparable sales growth of 1 percent. Sales growth in women’s fashion at 4.7 percent, home at 5.6 percent, kids at 4.6 percent, concessions at 8.2 percent, and marketplace at 5.8 percent drove performance, while the beauty category recorded lower sales. Online sales for the retail division increased 4.2 percent.

Conversely, Myer Apparel Brands experienced a 0.3 percent decline in comparable sales and a 1.3 percent drop in total sales on a pro forma basis to 760 million Australian dollars. Performance within the apparel division remained varied; a 6 percent growth in Just Jeans and relative stability in Dotti during the second half were offset by weakness in other brands, particularly Portmans. Online sales for the apparel division fell 9.2 percent due to lower digital conversion rates.

Margin pressure and cost management

Operating gross profit for the group reached 1.60 billion Australian dollars, up 14 percent on an actual basis but down 1.6 percent on a pro forma basis. The operating gross profit margin fell 190 basis points on a pro forma basis to 39.2 percent, affected by heightened promotional activity to stimulate consumer demand during the second half of the fiscal year and a category mix shift toward concessions.

Underlying earnings before interest and tax (EBIT) fell 7 percent on an actual basis to 139.40 million Australian dollars, or 23.5 percent on a pro forma basis, reflecting operating expenditure investments in strategic priorities.

The board did not declare a final dividend. The total dividend payout for FY26 remains limited to the fully franked interim dividend of 1.5 cents per share paid in May 2026, representing a payout ratio of 60 percent.

Current trading

Regarding recent trading, Myer Group executive chair Olivia Wirth noted: “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.”

In the first eight weeks of 1H27, Myer Group recorded flat comparable sales, up 0.2 percent, while actual sales dropped 2.7 percent. Myer Retail comparable sales rose 1.8 percent, while Myer Apparel Brands comparable sales fell 5.9 percent. Management maintains its FY27 CODB target at approximately 29 percent of total sales.