Myer FY26 Financial Results
Myer Reports $276.5M Loss Following Impairment Amid Tough Retail Conditions
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Key Points
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Myer’s operating gross profit was $1,603.2 million, with the gross-profit margin rising to 39.2% from 38.3% on an actual FY25 basis. Cost of doing business was $1,189.7 million, equivalent to approximately 29% of sales and in line with the company’s FY26 target.
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MYER one engagement strengthened beyond the increase in active members: the loyalty programme’s tag rate in Myer Retail reached a record 81.5%, up from 79.5% a year earlier, indicating that a larger share of transactions was linked to loyalty members.
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Myer’s network reshaping included closing 38 Myer Apparel Brands stores and opening 14, while the company began refurbishing the beauty hall at its Sydney City store. It also launched the Myer Marketplace platform in June 2026.
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The company’s net tangible assets per ordinary security fell to negative $0.12 from negative $0.06, highlighting balance-sheet pressure despite the group’s reported net cash position and available undrawn facilities.
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The deterioration was concentrated in the second half: Myer reported underlying NPAT of $51.7 million in 1H26, compared with full-year underlying NPAT of $42.5 million, as three interest-rate increases, fuel-price impacts linked to the Middle East conflict and the warmer winter weighed on later trading.
Myer Holdings reported a $276.5 million statutory loss for FY26, weighed down by a $279.6 million noncash impairment that masked underlying profitability. Power Retail Sales rose 0.7% to $4.09 billion on a group basis, but cost-of-living pressures, higher interest rates, and weak consumer demand eroded earnings. Underlying net profit after tax fell to $42.5 million from stronger prior-year levels, while the retailer suspended its final dividend and paid only a 1.5-cent interim payout.
The department store operator is pushing ahead with growth initiatives despite the tough environment. Myer's loyalty program MYER one now has 5.3 million active members, with transactions tagged to the program hitting a record 81.5% penetration. The company launched its Myer Marketplace platform in June 2026 and continued expanding owned brands while closing underperforming stores.
Profit Collapse Driven by Impairment and Second-Half Weakness
Myer's $276.5 million loss was almost entirely due to the $279.6 million noncash impairment, which wiped out reported profitability. Underlying earnings tell a different story: underlying EBIT reached $139.4 million and underlying NPAT $42.5 million. However, the deterioration was sharp in the second half—the company earned $51.7 million in underlying NPAT in the first half alone, showing how much trading weakened.
Three interest-rate increases, fuel-price impacts from Middle East conflict, and a warmer winter damaged second-half sales. Simply Wall St noted that despite record sales exceeding $4 billion, the company faced margin pressure. Net tangible assets per security fell to negative $0.12 from negative $0.06, signaling balance-sheet strain even with $100 million in net cash on hand.
Loyalty Program Strengthens Amid Challenging Consumer Environment
MYER one membership growth accelerated to 5.3 million active members, with loyalty program penetration in Myer Retail jumping to a record 81.5% from 79.5%. This means more than four in five transactions are now linked to loyalty members, giving Myer richer customer data and repeat-purchase insight. Gross profit margin expanded to 39.2% from 38.3% year-over-year, reflecting better product mix and pricing discipline.
The company is also testing new revenue streams. Fibre2Fashion reported that Myer's 11.3% sales growth was bolstered by progress in loyalty, brand expansion, and its new marketplace and retail-media businesses. Early FY27 comparable sales were broadly flat, however, as strength in Myer Retail was offset by continued weakness in Myer Apparel Brands.
Store Network and Beauty Hall Refresh Underway
Myer is reshaping its physical footprint to match shifting customer demand. The company closed 38 Myer Apparel Brands stores while opening 14 new ones, signaling a net reduction as it consolidates underperforming locations. A major refurbishment of the beauty hall at its Sydney City flagship store is also underway, part of a broader push to upgrade premium categories.
The Myer Marketplace platform, launched in June 2026, allows third-party sellers to reach the retailer's customer base without Myer holding inventory. This model reduces capital intensity and expands product range. Retail News Asia reported the impairment came after AU$319 million in one-off write-downs and expenses, reflecting the company's effort to reset its balance sheet for future growth.
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