Myer Group Announces FY26 Financial Results and Strategic Progress. Total sales for the 52 weeks ended July 25, 2026, increased by 11.3 per cent year on year to reach $4.09 billion. This annual financial summary indicates that while actual sales saw double-digit growth, comparable sales rose by 0.7 per cent and pro forma sales edged up by 0.3 per cent. Operating gross profit grew 14 per cent to $1.60 billion, though it saw a 1.6 per cent decline on a pro forma basis. The operating gross margin improved to 39.2 per cent from 38.3 per cent on an actual basis.
Detailed Financial Performance and Statutory Outcomes
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 7.9 per cent to $413.5 million. However, underlying earnings before interest and tax (EBIT) fell 7 per cent to $139.4 million, and underlying net profit after tax (NPAT) decreased by 2.9 per cent to $42.5 million. According to the financial results report, the company recorded a statutory net loss of $276.5 million, compared to a loss of $204.4 million in the previous year. This result followed a one-off, non-cash post-tax impairment of $279.6 million related to brand intangibles, stores, and goodwill. Underlying earnings per share were reported at 2.5 cents, while statutory earnings per share resulted in a loss of 16 cents.
Operational Environment and Cost Management
Executive chair Olivia Wirth stated that the second half of FY26 was marked by a significantly more challenging and volatile macroeconomic and retail environment than previous periods. Despite these hurdles, the group continued to execute its Growth Strategy and Value Creation programme. The cost of doing business (CODB) rose to $1.19 billion, representing 29.1 per cent of total sales. This increase was attributed to the inclusion of apparel brands and investments in strategic priorities, which were partially offset by integration synergies. On a pro forma basis, the operating gross margin fell by 107 basis points, influenced by promotional activities and a shift toward lower-margin categories.
Divisional Results and Retail Business Growth
In terms of retail business growth, Myer Retail sales rose 0.7 per cent to $3.33 billion. Growth in womenswear, kidswear, home, and concessions helped balance a decline in beauty sales. Myer Apparel Brands saw total sales of $760 million, a 1.3 per cent decline on a pro forma basis. While Just Jeans recorded a 6 per cent growth, other labels, specifically Portmans, experienced weaker performance. The retail sales performance across these divisions was affected by uneven trading conditions in the latter half of the year.
Factors Influencing Consumer Behavior
The discretionary spending trends were constrained by rising cost-of-living pressures, interest rate increases, higher fuel prices, and a cooling housing market. Additionally, a warmer start to the winter season in major Australian cities reduced the demand for seasonal clothing, leading to increased promotional efforts. Despite this, the MYER one loyalty program reached a record tag rate of 81.5 per cent, with active membership climbing to 5.3 million.
Cash Flow and Future Projections
Operating cash flow for the period increased to $263.2 million, and free cash flow rose to $213 million. This annual financial summary confirms capital expenditure of $50.2 million focused on systems, online platforms, and supply chain initiatives. The group achieved approximately $17 million in value-creation benefits and $20 million in apparel brand integration synergies.
Early FY27 Performance and Outlook
In the first eight weeks of FY27, the group reported that comparable sales rose 0.2 per cent, while actual sales declined 2.7 per cent to $519.6 million. This financial results report notes that Myer Retail comparable sales grew 1.8 per cent, but Apparel Brands comparable sales fell 5.9 per cent. Moving forward, the company is targeting a CODB of approximately 29 per cent of total sales. Management remains cautious regarding discretionary spending trends and consumer behavior over the coming year. This Retail Performance Report concludes that long-term retail business growth remains a focus through continued synergy captures and the completion of brand integrations. As part of the ongoing retail sales performance strategy, the group expects at least $30 million in annualised synergies from its apparel brands by FY28.
