Myer (MYR) H1 2025 earnings summary

Executive summary

• First half 2025 saw total sales nearly flat at AUD 1.831 billion, with comparable sales up 0.8% and online sales up 4.8%, now 22.3% of total sales.

• EBIT declined 14.3% to AUD 102 million and NPAT fell 18.5% to AUD 42 million, both impacted by AUD 12 million in NDC issues.

• Statutory NPAT was AUD 30 million, reflecting significant transaction and strategic review costs from the Apparel Brands acquisition.

• Strategic review completed, with the Apparel Brands transaction finalized and integration underway, expanding the group’s portfolio.

• No interim dividend declared; a special fully franked dividend of 2.5cps (AUD 21 million) payable in March 2025.

Financial highlights

• Operating gross profit was AUD 656 million, down 1% year-over-year, with gross margin at 35.8% (down from 36.4%).

• EBITDA declined 8.1% to AUD 198 million; statutory NPAT was AUD 30 million, down 40% year-over-year.

• Net cash position at period end was AUD 282 million, up from AUD 272.9 million; pro forma cash post-refinance was AUD 299 million.

• Operating cash flows declined by AUD 5–6 million, but overall net cash flows were higher.

• Inventory increased due to early winter stock and Chinese New Year, with improved inventory aging.

Outlook and guidance

• Second half 2025 trading remains volatile, with first five weeks’ sales down 2.6% year-over-year, but flat when adjusted for one-off events.

• AUD 10 million of NDC impact from first half will not recur, but higher ongoing fulfillment and remediation costs expected.

• Cost savings from restructuring Sass & Bide, Marcs, and David Lawrence expected to deliver AUD 10 million annually from FY2026.

• Refinancing to yield AUD 3 million in second half and AUD 11 million annually in funding cost savings.

• No interim dividend; special dividend of 2.5cps declared.