Myer Holdings Delivers 21.7% Profit Growth and $287M Net Cash in 1H26
Myer Group delivers growth and strategic progress in 1H26 half-year results
Myer Holdings (ASX: MYR) has released its Myer Holdings 1H26 Financial Results for the six months ended 24 January 2026, reporting growth in total sales and operating gross profit whilst maintaining a strong balance sheet. The department store group delivered total sales of $2,279.5 million (up 24.5%), with pro forma growth of 2.1%. Operating gross profit reached $886.0 million (up 35.1%), whilst remaining flat on a pro forma basis.
The group maintained a net cash position of $287.0 million and declared an interim dividend of 1.5 cents per share (fully franked), representing a payout ratio of 50.1%. These results demonstrate resilience in a challenging discretionary spending environment, as the company executes its growth strategy whilst maintaining financial discipline.
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Key financial metrics show earnings growth and balance sheet strength
The 1H26 period delivered underlying EBIT of $112.8 million (up 10.5%) and underlying NPAT of $51.7 million (up 21.7%). Statutory NPAT reached $40.3 million, representing growth of 32.8%.
The group maintained cost of doing business at 27.9% of total sales, within the FY26 target of approximately 29%. Cash conversion reached 134%, providing flexibility for continued strategic investment.
The period included a record Black Friday for Myer Retail, with December and January sales in line with the prior corresponding period.
| Metric | 1H26 Result | Change vs 1H25 | Pro Forma Change |
|---|---|---|---|
| Total Sales | $2,279.5m | +24.5% | +2.1% |
| Operating Gross Profit | $886.0m | +35.1% | Flat |
| Underlying EBIT | $112.8m | +10.5% | -17.2% |
| Underlying NPAT | $51.7m | +21.7% | -17.3% |
| Net Cash Position | $287.0m | +31.1% | n/a |
Strong cash conversion and disciplined cost management provide flexibility for continued strategic investment and shareholder returns.
MYER one loyalty programme reaches record engagement
The relaunched MYER one loyalty programme now has 5.1 million active members, up from 4.7 million in FY25. The Myer Retail tag rate reached a record 80.9% for 1H26 (FY25: 79.5%), whilst Myer Apparel Brands achieved a tag rate of 51.3% within approximately six months of loyalty programme launch.
The company expanded loyalty partnerships with CommBank, Velocity, JD Sports, and The DOM. The Shoppable App launched in August 2025, whilst AI-driven personalisation capabilities were deployed at scale.
Loyalty engagement drives repeat purchasing and higher customer lifetime value, critical metrics for retail investors assessing sustainable growth.
Understanding department store turnarounds — what investors should watch
Successful retail turnarounds rely on several key levers: brand refresh, loyalty programme strength, omni-channel integration, cost discipline, and balance sheet health.
Department stores face structural challenges from changing consumer behaviour and increased competition. Companies that successfully navigate these challenges typically demonstrate the ability to attract new brands, increase customer engagement through data-driven programmes, and maintain operational efficiency whilst investing in growth.
Myer’s combination of new brand launches, record loyalty engagement, and net cash position aligns with these turnaround principles. The company is addressing traditional retail challenges through strategic investment in customer experience, product range expansion, and digital capabilities.
This context helps investors assess whether Myer’s strategy addresses the structural challenges facing traditional retailers.
Brand expansion and Myer Apparel Brands integration drive product strategy
New Myer Exclusive Brands launched in February 2026, with positive early customer feedback reported. The company secured 30 new beauty brands, including Fenty Beauty, La Mer, and Guerlain.
A total of 14 new brands launched across Womenswear and Menswear in 1H26, with another 20 brands planned for 2H26. The company secured access to global brands GAP and TOPSHOP, with at least 55 additional new brands planned for FY27.
Myer Apparel Brands synergies on track
The company successfully transitioned Myer Apparel Brands to MYER one loyalty and added four Just Jeans ‘Stores of the Future’. The group exited transitional services from Premier Investments across eCommerce, Marketing, People & Culture, Retail Operations, and Finance.
Management targets at least $30 million in annualised synergies from Myer Apparel Brands integration, plus a further $10 million from sass & bide, Marcs, and David Lawrence integration.
Key brand and integration milestones:
- 30 new beauty brands secured
- 14 new Womenswear and Menswear brands launched in 1H26
- 20 additional brands planned for 2H26
- At least 55 new brands targeted for FY27
- Targeting $30 million annualised synergies from Apparel Brands integration
- Targeting $10 million additional synergies from sass & bide, Marcs, and David Lawrence
New brand partnerships and synergy delivery are catalysts for margin expansion and revenue diversification.
Store network optimisation and omni-channel momentum
The company closed 22 Myer Apparel Brands stores and opened 12 stores during the period, including seven former Jeanswest locations converted to Just Jeans. Investments were announced in the Myer Morley store in Perth and the Myer Sydney City beauty hall. The closure of Myer Roselands is set for July 2026.
The new Myer Marketplace platform remains on track for launch in May 2026. Online channel growth reached 18.0%, with Marketplace up 9.3%.
The proportion of online orders fulfilled from third-party logistics, the National Distribution Centre, and other distribution centres reached 32%, compared to 13% in 1H25.
Rationalising the store footprint whilst investing in high-performing locations and online channels improves capital efficiency and positions Myer for changing consumer behaviour.
2H26 trading update and outlook
For the first seven weeks of 2H26, Myer Group total sales increased 1.7% versus the prior corresponding period. Myer Retail sales grew 2.2%, with double-digit growth in Home, Kids, and Marketplace.
Myer Apparel Brands sales decreased 0.4% overall, however Just Jeans delivered growth of 9.8%.
Management continues to target FY26 cost of doing business at approximately 29% of total sales, acknowledging macroeconomic headwinds and ongoing pressures on discretionary spending.
Olivia Wirth, Executive Chair
“Given the current volatility in the wider macroeconomic environment and the ongoing pressures on discretionary spending, we are more focused than ever on delivering value for our customers.”
Early 2H26 momentum and management’s commitment to cost discipline provide visibility on near-term execution.
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Investment thesis — why this result matters for MYR shareholders
The Myer Holdings 1H26 Financial Results (ASX: MYR) present several investment considerations:
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Operational turnaround progress demonstrated: Top-line growth alongside disciplined cost management confirms the company is executing its strategy whilst maintaining financial rigour.
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Customer acquisition and retention supported: Record loyalty engagement of 5.1 million active members and new brand partnerships provide a foundation for sustainable revenue growth.
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Balance sheet strength provides flexibility: Net cash position of $287 million offers strategic flexibility and downside protection in a volatile macroeconomic environment.
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Identifiable earnings upside from synergies: Integration targets of $30 million from Myer Apparel Brands and a further $10 million from other acquisitions represent quantifiable margin expansion opportunities.
The fully franked interim dividend of 1.5 cents per share (50.1% payout ratio) demonstrates capital return discipline whilst maintaining investment capacity for growth initiatives.
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