Myer (MYR) H2 2026 earnings summary

Executive summary

• Total sales exceeded AUD 4 billion for the first time, reaching $4,088.8 million, up 11.3% year-over-year, with comparable sales growth of 0.7% amid challenging macroeconomic conditions and volatile trading.

• Operating gross profit rose 14% to $1,603.2 million, with cost discipline maintained and CODB margin at 29.1%, in line with FY26 targets.

• Underlying EBITDA increased 7.9% to $413.5 million, but underlying EBIT declined 7% and statutory NPAT was a loss of $276.5 million due to significant impairment charges; underlying NPAT was $42.5 million, down 2.9%.

• Ended the year with a net cash position of $100 million and undrawn debt facilities of $200 million.

• Significant delivery on strategic initiatives, including loyalty program expansion, omni-channel growth, integration of acquired brands, and value creation synergies of up to $42 million.

Financial highlights

• Comparable sales increased 0.7% year-over-year; total sales up 11.3% on an actual basis, driven by 9.1% online growth and 8.2% concession growth.

• Operating gross profit margin was 39.2%, up 92bps year-over-year, but down 107bps on a pro forma basis due to margin pressure from promotional activity and mix shift.

• Underlying EBIT margin was 3.4%, down from 4.1% prior year; underlying EPS was 2.5 cents per share, down 32.1% pro forma.

• Free cash flow improved by $12.7 million to $213.0 million, driven by higher EBITDA and lower capex.

• Net cash outflow was $23.7 million lower than prior year.

Outlook and guidance

• FY27 focus is on disciplined execution of growth strategy, expanding loyalty partnerships, launching new brands, and targeting annualised synergies of at least $30 million from Myer Apparel Brands integration by FY28.

• Trading in the first eight weeks of FY27 remained challenging, with total sales down 2.7% and comparable sales flat or up 0.2%.

• Expect continued volatility in trading conditions and consumer behavior over the next 12 months, with cost of doing business targeted at ~29% of total sales.

• Strategic priorities include enhancing customer engagement, expanding product/brand portfolio, optimizing network and supply chain, and progressing store renewals.

• Early FY27 trading shows uneven performance, with softer August and improving momentum in September.