Myer Shrugs Off Biggest Loss in Nearly a Decade With Bold Claim

Leading department store chain Myer has recorded its worst annual loss in almost a decade, as cost-of-living pressures prompted shoppers to rein in their spending.

Despite the setback, Myer is pressing ahead with its transformation strategy and is counting on its reputation as a destination for gifts to improve its performance during the crucial Christmas trading period.

The 126-year-old retailer reported a statutory net loss of $276.5million for fiscal 2026. It was the company’s weakest result since a $486million loss in fiscal 2018 and significantly below the $204.4million loss recorded in fiscal 2025.

Myer attributed the result to the inflationary impact of higher fuel prices linked to the conflict in the Middle East, three interest rate increases during 2026, slower household income growth and a softer housing market.

The retailer is also navigating a major transition, seeking to combine its traditional department store operations with a speciality brand portfolio acquired through a recent investment.

‘While the financial outcome for fiscal 2026 is below our expectations, we remain focused on the areas within our control as we continue to execute our strategy,’ executive chair Olivia Wirth told a briefing on Wednesday.

The plan includes expanding its brand offering to appeal to younger shoppers. Ms Wirth highlighted Myer’s loyalty program, noting that half of its members are under 35.

‘We continue to believe it’s the right strategy to create long-term shareholder value,’ she said.

Ms Wirth said Myer would make greater use of technology, including artificial intelligence, during fiscal 2027 while also pursuing further cost reductions.

However, trading during the first eight weeks of the new financial year has been difficult, matching or falling below the conditions seen in the second half of fiscal 2026, when the Middle East war began.

‘We anticipate trading conditions and consumer behaviour will remain volatile over the next 12 months,’ she said.

Myer is now focused on delivering Christmas stock to its 56 stores, with its holiday campaign scheduled to launch in Melbourne next week.

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‘We do perform well during gifting seasons – we are synonymous with gifting,’ Ms Wirth said.

Annual sales, including revenue from in-store concessions, reached $4billion. It was Myer’s strongest sales result, although the figure was only marginally higher on a comparable basis than in fiscal 2025.

Concessions, including brands such as Country Road, generated most of the growth. They were followed by the online marketplace, homewares, women’s fashion and children’s products, while weaker beauty sales offset some of the gains.

Myer’s speciality brands portfolio includes Just Jeans, Jay Jays, Dotti, Jacqui E and Portmans. The retailer acquired the brands from Solomon Lew’s Premier Investments in a scrip deal valued at almost $900million, with Premier also contributing about $80million in cash to Myer.

Myer is continuing to pursue synergies from the acquisition, making the investment a further priority for fiscal 2027.

Mr Lew, who has about a 30 per cent stake in Myer through his private company, will join its board as a non-executive director from Thursday.

The news is timely, after Myer revealed Portmans was struggling, and sales at Dotti, Jacqui E and Jay Jays were broadly stable.

But Just Jeans remains a standout, with sales rising 6 per cent during the year to represent about 40 per cent of apparel brand sales.

There was no final dividend for the 52 weeks ended July 25, after Myer paid a first-half dividend of 1.5 cents, down from 2.5 cents in the prior corresponding half.

Its shares rose 4.3 per cent to 18.2 cents in afternoon trading on Wednesday but are still about 62 per cent lower than a year ago.

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