Myer Group has reported a statutory net loss after tax of $276.5 million for FY26, which is 35.3 per cent lower than FY25 on an actual basis.
The actual result takes into account the Apparel Brands segment – consisting of Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans – which Myer had officially acquired from Premier Investments in early 2025. This means just six months of the Apparel Brands segment in FY25 is compared to FY26.
The net loss was mostly driven down by a $279.6 million one-off, non-cash, post-tax impairment charge, relating to goodwill, brand intangibles and store impairment costs across Myer Group.
Minus the impairment charge and other significant items, Myer Group reported an underlying net profit after tax (NPAT) of $42.5 million, which is 2.9 per cent lower on an actual basis and 32.1 per cent on a pro forma basis – or covering the full 12 months of Apparel Brands in FY25 compared to FY26.
The sink on the bottom line comes as Myer reported a total sales of $4.09 billion, which is up 0.7 per cent on a comparable basis and 11.3 per cent on an actual basis.
Myer Retail, which excludes Apparel Brands, grew by 1 per cent on a comparable basis and 0.7 per cent in actual terms. Apparel Brands comp sales slipped by 0.3 per cent, and was down by 1.3 per cent on a pro forma basis.
The group’s operating gross profit grew by 14 per cent on an actual basis to $1.6 billion, but slipped 1.6 per cent on a pro forma basis, with the company citing higher than planned promotional activity to stimulate demand.
Much of this top-line softening was driven in the second half of FY26, as cost-of-living pressures weighed heavily on consumer sentiment, according to Myer.
These pressures included the inflationary effects of higher fuel prices arising from the Middle East conflict, three interest rate increases in 2026, slower household income growth, a weaker housing market and financial uncertainties for many households.
Despite mixed trading month-to-month for Myer Group, including a recovery in May, cost-of-living impacts intensified in June and July, significantly constraining household budgets and consumer spending.
Myer noted this was further compounded by a warmer than average start to winter in most of Australia’s major cities, impacting clothing sales.
Myer Group sought to stimulate demand by increasing promotional activity, but it was not sufficient to offset weak underlying consumer spending.
Myer also reported early trading figures for the first eight weeks of FY27.
Myer Group comparable sales were flat (up 0.2 per cent), with actual sales down 2.7 per cent. Myer Retail comparable sales were 1.8 per cent higher, while actual sales dropped 1.9 per cent.
The group’s Apparel Brands segment saw comparable sales down 5.9 per cent in the first eight weeks of FY27, with actual sales down 6 per cent.
Myer is targeting a cost of doing business (CODB) for FY27 of around 29 per cent of total sales.
“The second half of FY26 was characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25,” Myer Group executive chair Olivia Wirth said.
“While our performance in the first four months of 2H26 was mixed, including a stronger May, we observed a material downturn in consumer sentiment. This was particularly evident in June and July, adding to subdued consumer sentiment and weak discretionary spending.”
Despite these challenges, Wirth said the company continued its progress with its growth strategy and value creation program and integration activities.
“We continued to strengthen the business, achieving record loyalty engagement and tag rates, expanding our brand and product offering, launching our retail media platform, progressing our store network optimisation program, implementing a new marketplace platform and delivering value creation benefits and synergies from further integration,” Wirth said.
Myer Retail tag rate hit 81.5 per cent, which is up from 79.5 per cent in FY25. Across Apparel Brands, this was up at 55.1 per cent, with active members at 5.3 million, up from 4.7 million in FY25.
Myer also launched 36 new brands in beauty, 31 across womenswear and menswear, and secured access to the likes of Gap, Fenty Beauty and La Mer.
Meanwhile, the group closed 38 and opened 14 Apparel Brands’ stores through FY26, and also commenced refurbishment of Myer Sydney City beauty hall and upgrade of Myer Morley in Perth.
In the value creation space, Myer reported a circa $17 million savings from the closure of Myer Asia sourcing office, the closure of an overseas hub, the optimisation of staffing flexibility in Myer Retail stores, and the restructuring of retail operations in Myer Apparel Brands. These initiatives partially offset CODB and inflation pressures.
Wirth also spotlighted the volatile second half trading conditions, which Myer initially reported in July in its preliminary trading update. She and her team expect this volatility in consumer behaviour and discretionary spending will continue over the next 12 months.
“Consistent with the trends we observed in June and July, trading through the early part of FY27 has remained uneven, with softer conditions experienced in August followed by improving trading momentum through September, despite recent challenges in global shipping,” Wirth said.
“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.”