Myer (MYR) H1 2026 earnings summary

Executive summary

• Total sales grew 24.5% to $2,279.5m, with pro forma growth of 2.1% compared to 1H25, reflecting the integration of Apparel Brands and resilience amid macroeconomic headwinds.

• Operating gross profit increased 35.1% (flat pro forma), with growth in key categories and strong Black Friday and holiday trading.

• Record Myer One loyalty tag rate and active customer numbers, with 5.1 million active members.

• Strategic priorities advanced, including MYER one loyalty relaunch, new exclusive brands, and omni-channel enhancements.

• The period included the first full interim contribution from the Apparel Brands business combination.

Financial highlights

• Underlying EBITDA was $250.8m, up 26.5% (down 10.9% pro forma); underlying EBIT was $112.8m, up 10.5% (down 17.2% pro forma).

• Operating gross profit increased to $886.0 million from $656.0 million year-over-year.

• Net cash position reached $287m, supporting ongoing investment and a fully franked interim dividend of 1.5 cents per share.

• Operating cash flow increased by $57m to $273.3m, with free cash flow at $247.8m.

• CODB to sales at 27.9%, within the FY26 target of 29%.

Outlook and guidance

• Early 2H26 trading shows total sales up 1.7% in the first seven weeks, led by Myer Retail.

• FY26 CODB target remains at ~29% of total sales.

• Targeting at least AUD 30 million annualized synergies from Apparel Brands integration, with full benefit likely by end of FY27.

• Value creation initiatives expected to deliver AUD 16 million annualized benefit by FY27.

• The business remains subject to seasonal fluctuations, with stronger performance in the first half due to Christmas trading.