The Myer Group – consisting of both the department store and Apparel Brands – has reported soft comparable sales growth and a pro forma profit slip over the FY26 trading period, with the second half proving to be volatile.
In its FY26 preliminary trading update this morning, the company reported total sales for the year of just over $4 billion, which is up 11.3 per cent when including the fully integrated Apparel Brands segment – Just Jeans, Jay Jays, Jacqui E, Dotti and Portmans – for the full year. The Apparel Brands segment was officially made part of the business in early 2025.
On a pro forma basis, which includes only six months of Apparel Brands in FY26, total group sales were up just 0.3 per cent. Myer Retail – excluding Apparel Brands – saw total sales rise 0.7 per cent, with comp sales up 1 per cent. For Apparel Brands, pro forma total sales were down 1.3 per cent, with comp sales down 0.3 per cent.
According to Myer, the total group sales nudge-up was driven by strong growth in home, womenswear and kids categories, as well as Just Jeans and its marketplace and concessions sales segments. This was offset by lower sales in beauty and Portmans.
Myer reported that trading through the second half has been more volatile on a month-on-month basis, with sustained cost-of-living pressures driving consumer sentiment to its lowest levels in recent history. These pressures include inflation driving up fuel prices due to the Middle East conflict, three interest rate rises this year so far, 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 strong recovery in May, these impacts have compounded in June and July, significantly constraining household budgets and consumer spending,” Myer noted.
“This has been further compounded by a warmer-than-average start to winter in most of Australia’s major cities.”
Myer tried to stimulate demand with increased promotional activity. The retail group shared that while value creation and integration synergies supported performance, it was not sufficient to offset weak underlying consumer spending.
This included the closure of Myer’s Asia sourcing office, the closure of one of its overseas hubs, the reorganisation of staffing flexibility across Myer Retail stores, and the restructuring of retail operations in Apparel Brands.
“Year-end results finalisation and verification has commenced, which will include assessment and measurement of any impairment and additional significant items required to finalise statutory NPAT.”
At the bottom line, Myer reported an operating gross profit that should hit somewhere just above $1.6 billion. This is up by around 14 per cent on an actual basis –including Apparel Brands for the full financial year, but is down by around 2.1 to 2.5 per cent on a pro forma basis. The promotional activity would have impacted here.
Meanwhile, the operating gross profit margin for Myer Group is expected to be in the range of 39.2 per cent to 39.3 per cent. FY25 actual margin here was 38.3 per cent, while pro forma was at 40.3 per cent.
Cost of doing business (CODB) percentage was also broadly in line with FY26 target of ~29 per cent, “notwithstanding lower-than-expected total sales.”
Myer executive chair Olivia Wirth said the second half had a harsher impact on trading than the first half, or even FY25. Despite this, she added that the team continues to strengthen the business in other areas. This includes
This includes achieving a record tag rate in Myer Retail of 81.5 per cent, up from 79.5 per cent in FY25. In the Apparel Brands segment, this hit 55.2 per cent, which is less than 12 months since launch.
Active members now sit at 5.3 million, up from 4.7 million at the end of FY25.
Myer also introduced 37 new beauty brands across its department store, and 29 more across womenswear and menswear. This included the likes of Fenty Beauty, La Mer, Guerlain and Gap.
The store network across the group is also updating, with 38 stores closed, alongside 14 new stores across the Apparel Brands. The beauty hall at Myer Sydney CBD is being refurbished, with Myer Morley in Perth being upgraded.
Myer also operates a marketplace offering, with 25,000 new products being listed since June.
“While we remain cautious on the near-term consumer outlook, we are confident that the strategic actions we are taking today are strengthening the group’s competitive position, resilience and supporting the creation of long-term shareholder value,” Wirth said.