Myer (MYR) H2 2025 earnings summary

Executive summary

• FY 2025 was a transition year marked by the integration of Apparel Brands, driving diversification and resetting the base for growth.

• Total sales reached $3,673.8 million, up 12.5% with Apparel Brands included, and up 0.5% pro forma year-over-year; online sales rose 15% to $818.9 million.

• Profitability was impacted by soft macroeconomic conditions, subdued consumer demand, and increased promotional activity.

• Statutory NPAT was a loss of $211.2 million, driven by a $213.3 million non-cash goodwill impairment and $34.7 million in significant items.

• No final FY25 dividend declared; a 2.5 cent per share pre-completion dividend was paid in March 2025.

Financial highlights

• Operating gross profit increased 17.8% to $1,406.5 million, with margin up 172bps to 38.3%.

• EBIT was $140.3 million, down 13.8% year-over-year, and underlying NPAT was $36.8 million, down 30%.

• Net cash position improved to $168.1 million, up $54.3 million from FY24.

• Cost of doing business rose 22.6% to $1,023.3 million, mainly from Apparel Brands inclusion and inflationary pressures.

• No final dividend declared; 2.5c/share pre-completion dividend paid in March 2025.

Outlook and guidance

• Early FY26 trading shows total sales up 3.1% pro forma, with Myer Retail up 4.3% and Apparel Brands down 1.3%.

• Cost of doing business as a percentage of sales is targeted to be lower than 2H25 (guidance: 29–30%), but pressures are expected to persist into FY26.

• NDC challenges and cost pressures are expected to continue into 1H26, with $32 million investment planned and $20 million annualized benefit expected by FY28.

• Over $30 million in annualized synergies targeted by 1H27 from Apparel Brands integration, with one-third to be realized in FY26.

• Cautious optimism for FY26, with anticipated returns from recent investments and enhancements.