Myer (MYR) H1 2025 earnings summary

Executive summary

• Strategic review completed and growth strategy initiated, including the Apparel Brands acquisition and new executive team, amid challenging macroeconomic conditions and cautious consumer sentiment in Australia and New Zealand.

• Total sales for 1H25 were $1,830.9 million, nearly flat year-over-year, with comparable sales up 0.8% and online sales up 4.8% to $409 million, now 22.3% of total sales.

• EBIT declined 14.3% to $102 million and NPAT fell 18.5% to $42 million, both impacted by $12 million in adverse effects from National Distribution Centre (NDC) issues.

• Statutory NPAT was $30.4 million, reflecting $14.1 million in transaction and implementation costs related to the Apparel Brands acquisition.

• No interim dividend declared; a fully franked pre-completion dividend of 2.5 cents per share was announced, payable in March 2025.

Financial highlights

• Operating gross profit was $656.0 million, down 1.4% year-over-year, with a margin rate of 35.8%, down from 36.4%.

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

• Operating cash flows declined by $5–6 million, but net cash position improved to $219–282 million at period end.

• Inventory increased by $31 million year-over-year due to early winter stock and Chinese New Year purchases, with improved ageing profile.

• Weighted average lease expiry reduced to eight years.

Outlook and guidance

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

• NDC challenges and remediation costs expected to continue impacting results in 2H25, but $10 million of first-half NDC impact will not recur.

• SBMDL restructure to deliver $10 million annual EBIT benefit from FY2026.

• Refinancing to yield $3 million in 2H25 and $11 million annually in funding cost savings.

• Investor Strategy Day scheduled for 28 May 2025 to outline strategic pillars and growth plans.