Myer (MYR) H2 2025 earnings summary

Executive summary

• FY25 was a transition year marked by the integration of Apparel Brands, driving diversification and early synergy realization, with total sales of $3.7 billion, up 0.5% pro forma, but profitability impacted by soft macroeconomic conditions and increased promotional activity.

• Online sales grew 15% to $818.9 million, with Marketplace sales up 41.4%, reflecting ongoing investment in digital and omnichannel capabilities.

• Statutory loss was $211.2 million, driven by a $213.3 million non-cash goodwill impairment for Apparel Brands and $34.7 million in other significant items.

• Integration of Apparel Brands is progressing, targeting $30 million in annualized synergies by 1H27.

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

Financial highlights

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

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

• Cost of doing business increased 22.6% to $1,023.3 million, mainly from Apparel Brands inclusion and higher store wages and occupancy costs.

• Net cash ended at $168.1 million, up $54.3 million from FY24.

• 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 % of sales is targeted between 29% and 30%, below 2H25 levels, with ongoing pressures expected.

• NDC investment of $32 million will largely fall in FY26, with $20 million annualized benefits expected by FY28.

• One-third of $30 million synergy target to be realized in FY26, two-thirds by FY27, and full run-rate in FY28.

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