Myer Group reported a loss last fiscal year following its purchase of Apparel Brands, with shares dropping by 28.9%.
Total sales were A$3.67 billion across the fiscal year, up 12.5% due to the acquisition, while Myer Retail sales rose 1.2%. It reported a statutory net loss after tax of $211.2 million, caused by a one-off non-cash impairment from the acquisition.
“FY25 was a transition year for Myer Group as we reset the base to position the business for long-term growth. Despite challenging macroeconomic conditions and tough retail markets in Australia and New Zealand, we achieved positive sales growth in our first period as a combined Group,” said Myer executive chair Olivia Wirth.
“Our trading for the first seven weeks of FY26 has been positive and we are cautiously optimistic about the year ahead, with emerging pockets of improving consumer strength. We also expect to see a return on the enhancements and investments we have made to strengthen the Group and offset ongoing cost of doing business headwinds.”
Operating gross profit was $1.41 billion, boosted in the year’s second half by the Apparel Brands purchase. The company reported $656.0 million in FY25’s first half.
The company’s cost of doing business rose $43 million over the fiscal year to $1.02 billion, due to higher store costs and occupancy outgoing costs, as well as the Apparel Brands acquisition. Myer projects these cost pressures will continue in FY26.
Net profit after tax was $36.8 million. This is a decrease from $42.4 million in the fiscal year’s first half, and $52.6 million across FY24.
Myer Retail sales were supported by a 7.4% spike in its Home segment and a 0.8% increase in its Beauty segment. Kids and Womenswear sales fell, while Menswear sales were flat.
Apparel Brands, which includes Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti, was acquired by Myer from Solomon Lew’s Premier Investments in January.
Portmans was the only Apparel Brands business to report sales growth in FY25, rising 1.3%. Jay Jays sales remained flat, while Just Jeans, Dotti, and Jacqui E all posted declines.
The company’s MYER one membership program had 4.7 million active customers, up 6.9% over FY2024. MYER one will be relaunched in October.
Myer did not declare a final dividend. It paid a pre-completion dividend of $0.025 in March.
Myer’s (ASX: MYR) share price was $0.46 at the time of writing, down from its previous close at $0.64. Its market capitalisation is $809.37 million.
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