Highlights

• Myer shares jumped despite a statutory loss and no final dividend.
• Higher sales came with weaker underlying profit and increased promotional pressure.
• Early FY27 apparel sales raise questions about the strength of the recovery.

Market Reaction

Myer Holdings Limited (ASX: MYR) climbed 15.7% to AU$0.202 as investors considered its FY26 results and a change to its board, both announced on 23 September 2026. Progress on integration offered encouragement, but weaker earnings and subdued apparel sales left the outlook uncertain.

Sales Growth Masks Earnings Pressure

For the 52 weeks ended 25 July 2026, total sales including concession sales reached AU$4,088.8 million, an 11.3% increase on an actual basis. That comparison reflects a full year of Myer Apparel Brands in FY26 compared to six months in FY25. Comparable sales rose 0.7%, while sales increased 0.3% on a pro forma basis that compares full years.

Operating gross profit grew 14.0% to AU$1,603.2 million on an actual basis, but declined 1.6% pro forma as promotions increased. Underlying earnings before interest and tax fell 7.0% to AU$139.4 million. Underlying net profit slipped 2.9% to AU$42.5 million.

A AU$279.6 million non-cash, post-tax impairment contributed to a statutory loss of AU$276.5 million. Myer declared no final dividend, following its fully franked interim payment of 1.5 cents per share in May.

Integration Progress and Board Appointment

Myer delivered approximately AU$20 million in Apparel Brands integration savings and AU$17 million in benefits from its value creation program. It is targeting annualised Apparel Brands savings of at least AU$30 million from FY28. At year-end, the group held approximately AU$100 million in net cash; undrawn debt facilities stood at AU$200 million on 22 September.

Solomon Lew will become a non-executive director on 24 September, with Mark Middeldorf appointed as his alternate. The Lew Group became Myer’s largest shareholder following the Apparel Brands acquisition.

Outlook: Can Savings Close the Gap?

Trading has yet to show a broad recovery. In the first eight weeks of FY27, comparable sales increased 1.8% at Myer Retail but declined 5.9% at Apparel Brands, leaving group growth at 0.2%. Management expects consumer spending to remain uneven and is targeting costs of doing business near 29% of sales in FY27. Further share price support may depend on Myer turning integration savings into stronger earnings while reducing its reliance on promotions.

Note- All data presented is based on information available at the time of writing.

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