Myer Reports $276m FY26 Loss as Impairments Weigh on Earnings

Department store group records $4.1bn in sales, while weaker discretionary spending and a $319m one-off charge pressure the bottom line

Myer has reported a statutory net loss of $276.5 million for FY26, with impairments and other one-off costs of around $319 million weighing heavily on the result. The underlying result was more stable, with underlying NPAT of $42.5 million, down 2.9% from the previous year.

Total sales reached $4.09 billion, an increase of 11.3%, although comparable sales grew by just 0.7% amid what the company described as challenging macroeconomic conditions and volatile trading.

Impairments drive statutory loss

The major drag on Myer's statutory earnings came from approximately $280 million of impairments, including writedowns across goodwill, brand intangibles and stores.

Underlying EBITDA increased 7.9% to $413.5 million, while underlying EBIT declined 7.0% to $139.4 million. The company also ended FY26 with $100.1 million in net cash as of July 25.

Myer did not declare a final dividend, leaving the full-year payout at the 1.5 cents per share interim dividend paid in May.

Consumer spending remains under pressure

Myer Executive Chair Olivia Wirth said trading during the first four months of the second half was mixed, with May performing more strongly before a material deterioration in consumer sentiment and weaker discretionary spending.

The comments highlight the pressure facing department stores as consumers remain cautious about discretionary purchases. Despite the challenging environment, Myer said comparable sales increased during the year.

Solomon Lew joins Myer board

The results coincided with the appointment of billionaire investor Solomon Lew as a non-executive director. Lew is Myer's largest shareholder, holding roughly 30% of the company through Century Plaza Investments.

His appointment follows Myer's invitation for Lew to join the board after the company acquired his Apparel Brands business, which includes Just Jeans, Jay Jays, Dotti and Portmans.

Olivia Wirth said Lew's experience would benefit the board and Myer Group, while Lew said he looked forward to working with the board during a period of significant change.

Myer shares rise despite loss

Despite the statutory loss and comments around weaker consumer spending, Myer shares rose around 10% to 19.25 cents in early trading.

The market reaction came as investors focused on the underlying earnings performance and the company's ongoing changes rather than the impairment-driven statutory loss. Myer's market capitalisation has nevertheless fallen by more than 60% during the year, highlighting the significant pressure on the stock.

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