Myer delivers preliminary FY26 sales of $4.089 billion as tough consumer conditions bite
Myer Group (ASX:MYR) has released a preliminary and unaudited FY26 trading update, reporting total sales of $4,089 million for the 12 months ended 25 July 2026.
The figure represents growth of 11.3% on an actual basis and 0.3% on a pro forma basis, with group comparable sales up 0.7%. Management attributed the result to a volatile second half and weak discretionary spending, partially offset by strategic progress.
Full audited FY26 results are scheduled for release in September 2026. All figures in the update remain preliminary and unaudited.
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Sales, margins and cost performance at a glance
The preliminary update separates two comparison bases. The actual basis reflects the enlarged group, while the pro forma basis offers a like-for-like read across both periods. Within these figures, Myer Retail total sales rose 0.7% (comparable sales up 1.0%), while Myer Apparel Brands pro forma total sales fell 1.3% (comparable sales down 0.3%).
Category performance was mixed. Strength came from Home, Womenswear, Kids and Just Jeans, alongside strong Marketplace and Concession growth. Softer sales were recorded in Beauty and Portmans.
Operating gross profit (OGP), the profit generated from sales after the direct cost of goods, was influenced by higher than planned promotional activity used to stimulate demand. Cost of doing business (CODB) as a percentage of sales remained broadly in line with the FY26 target of ~29%, despite lower than expected total sales.
| Metric | Actual basis | Pro forma basis | FY25 comparison | Note |
|---|---|---|---|---|
| Total sales | $4,089M (up 11.3%) | Up 0.3% | — | Includes concession sales |
| Operating gross profit (OGP) | ~$1,601M–~$1,607M (up ~13.8%–14.3%) | Down ~2.1%–2.5% | — | Higher than planned promotional activity |
| OGP margin | ~39.2%–39.3% | ~39.2%–39.3% | 38.3% (actual) / 40.3% (pro forma) | Margin to total sales |
| Group comparable sales | Up 0.7% | Up 0.7% | — | — |
| CODB percentage | ~29% | ~29% | — | Broadly in line with FY26 target |
A volatile second half squeezes discretionary spending
Trading throughout the second half of FY26 (2H26) was volatile on a month-to-month basis, with the company citing sustained cost-of-living pressures that drove consumer sentiment to its lowest levels in recent times.
According to Myer, these pressures included:
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Inflationary effects of higher fuel prices arising from the Middle East conflict
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Three interest rate increases in CY26
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Slower household income growth and a weaker housing market
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Financial uncertainties for many households
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A warmer than average start to winter across most major Australian cities
Trading followed an uneven path from February through July. The company noted a strong recovery in May, before conditions compounded in June and July, significantly constraining household budgets and consumer spending. Myer sought to stimulate demand by increasing promotional activity, though this was not sufficient to fully offset weak underlying spending.
The contrast with the Myer 1H26 results is sharp: that period delivered underlying NPAT growth of 21.7%, a net cash position of $287 million, and comparable sales momentum that management had expected to carry into the second half.
Olivia Wirth, Executive Chair, Myer Group
“The second half of FY26 has been characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25… While we remain cautious on the near-term consumer outlook, we are confident that the strategic actions we are taking today are strengthening the Group’s competitive position, resilience and supporting the creation of long-term shareholder value.”
Understanding pro forma vs actual — why the two numbers differ
The two comparison bases in this update matter for interpreting the result correctly. The actual basis for FY25 included 12 months of Myer Retail but only six months of Myer Apparel Brands. The FY26 actual result includes a full 12 months of both.
As a result, the headline 11.3% jump partly reflects the additional six months of acquired sales now captured, rather than purely underlying organic growth.
The pro forma basis strips this effect out by comparing 12 months to 12 months across both periods, delivering a cleaner like-for-like read of 0.3% growth.
For investors gauging true underlying trading momentum, the pro forma figure offers the more comparable measure. The actual figure, meanwhile, reflects the enlarged group’s total scale.
Strategic progress across loyalty, brands and network
Despite the trading softness, Myer reported continued progress executing its Growth Strategy, Value Creation program and integration activities across five areas.
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Customer & Loyalty — a record tag rate in Myer Retail of 81.5% (FY25: 79.5%) and 55.2% in Myer Apparel Brands; active members at a record 5.3 million (FY25: 4.7 million); and the launch of the Myer Media Network, powered by MYER one.
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Products & Brands — launched 37 new brands in Beauty and 29 across Womenswear and Menswear, and secured access to global brands including Fenty Beauty, La Mer, Guerlain and GAP.
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Omni-channel Network — closed 38 and opened 14 Myer Apparel Brands stores; commenced refurbishment of the Myer Sydney City beauty hall and an upgrade of Myer Morley in Perth; launched a new Myer Marketplace platform in June offering 25,000 new products; and extended the Myer Roselands lease until January 2027.
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Sourcing & Supply Chain — continued to progress the Proof-of-Concept Stage at the National Distribution Centre (NDC) to mitigate execution risk for the long-term solution.
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Value Creation & Integration Synergies — benefits from closing the Myer Asia sourcing office and one overseas hub, reorganising staffing flexibility, and integrating Myer Apparel Brands, including refinancing and initial procurement benefits, and from the integration of sass & bide, Marcs and David Lawrence.
What’s next — audited FY26 results due September 2026
Myer Group will announce its full audited FY26 results in September 2026, following completion of the annual audit and Board approval. The exact release date is to be confirmed and notified to the market in due course.
Year-end results finalisation and verification has commenced. The company noted this process will include assessment and measurement of any impairment and additional Significant Items required to finalise Statutory NPAT.
For investors, the September release will carry the statutory bottom line and clarity on any impairment charges. The preliminary update signals the direction of sales and margins, but not final earnings, which remain subject to that finalisation process.
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