Myer sinks to massive loss as shoppers tighten belts, RBA delivers rate hikes and fuel crisis drags on
Three rounds of interest rate rises from the Reserve Bank, coupled with a petrol crisis fuelled by the Middle East war and a warmer than average start to winter, has driven losses at Myer deeper into the red.
Myer boss Olivia Wirth warns trading conditions and consumer behaviour will remain volatile for the next 12 months as rising interest rates, a fuel crisis and tumbling property market make shoppers nervous.
The department store giant on Wednesday reported a worsening full-year loss of $276.5 million in the year to July 25. That compared with a loss of $211.2m last year.
The bottom line was hurt by a one-off, non-cash, post-tax impairment of $279.6m related to goodwill, brand intangibles, and store impairment across the Myer group.
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By continuing you agree to our Terms and Privacy Policy.It was the store’s second worst financial year in 126 years of trading.
No final dividend was declared.
“The operating environment has become increasingly challenging, with significant macroeconomic pressures impacting consumers,” Ms Wirth told investors on a call.
“Our customers are experiencing ongoing cost-of-living pressures, and there is a heightened consumer uncertainty and rapid changes in technology reshaping the retail landscape.
“We anticipate trading conditions and consumer behaviour will remain volatile over the next 12 months.”
Total sales for 2026 jumped 11.3 per cent to $4.1 billion. On a comparable basis, it was up just 0.7 per cent.
At Myer’s flagship department stores, sales growth was recorded in women’s fashion (up 4.7 per cent), homewares (up 5.6 per cent), kids (up 4.6 per cent) and concessions items (up 8.2 per cent). These offset weaker sales across beauty products.
Its Apparel Brands label Just Jeans lifted sales 6 per cent, but that was offset by lower sales in other brands, particularly Portmans where sales plunged more than 10 per cent.
Other brands in the stable — Jay Jays, Jacqui E and Dotti — are also struggling in the first eight weeks of the new financial year, with sales across Apparel Brands already 6 per cent lower.
Group earnings before interest, tax, depreciation and amortisation for the year rose 7.9 per cent to $413.5 million, hurt by a huge jump in the cost of doing business. Underlying profit was down 2.9 per cent to $42.5m.
Myer first flagged the dire trading conditions in an update in July, warning sales had slumped in the final two months of the financial year as the inflationary effects of higher fuel prices triggered by the Iran war, three interest rate hikes, slower household income growth, and a weaker housing market forced shoppers to keep their wallets shut.
Subdued trading conditions have continued into the new financial year, with comparable group sales flat for the first eight weeks.
Same-store sales at Myer retail, the department store division, was up 1.8 per cent. Sales at Apparel Brands was down 5.9 per cent on a comparable basis.
The group also reported that one-time investor agitator Solomon Lew — the boss of Premier Investments which last year sold Apparel brand to Myer — will join the board as a non-executive director.
Ms Wirth said his deep retail expertise and position as the group’s largest shareholder would be important in helping to drive long-term value creation.
“Sol knows the retail sector inside and out. We are confident that the board and Myer Group will benefit greatly from his vast experience and expertise,” she said.
Originally published as Myer sinks to massive loss as shoppers tighten belts
