The next 12 months will make or break the future of iconic Aussie department store Myer, a retail expert warns, after plunging profits, store closures and a share-market bloodbath. 

The 124-year-old chain revealed on Tuesday that its profits had collapsed by almost a third in the 12 months to July 26, blaming sluggish consumer demand and tough economic conditions. 

Investors dumped Myer stock after the results, sending shares down 15 per cent at the open of the day’s trade before the freefall accelerated to a 28.91 per cent loss by midday, trading at $0.46. 

The retailer’s net profit after tax fell to $36.8 million, down 30 per cent on the previous year. Earnings before interest and tax slid nearly 14 per cent to $140.3 million. 

Myer also booked a staggering $211.2 million statutory loss, the fallout from its acquisition of five fashion brands from Premier Investments – Just Jeans, Jay Jays, Jacqui E, Portmans and Dotti.

Executive chairwoman Olivia Wirth tried to steady nerves, insisting 2024-25 was a ‘transition year’ as the group bedded down its new brands and slashed $30 million in costs. 

‘FY25 was a transition year for Myer Group as we reset the base to position the business for long-term growth,’ she said.

‘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.’

But retail expert Dr Gary Mortimer warns the clock is ticking for Myer.

Profits for the Myer Group slumped by almost a third in the last financial year, citing tough economic conditions and declining consumer demand

Following a profit of $43.5million last year, Myer also recorded a $211.2million statutory loss

He said that sales for Myer’s newly acquired brands Just Jeans, Jay Jays, Jacqui E, Portmans and Dotti were either flat or declined during the second half of 2024-25.

‘It’s only year one of the acquisition, so it will be interesting to see how the next 12-24 months play out,’ Dr Mortimer told Daily Mail.

‘It’s been a challenging time for department stores, which have struggled in recent years.

‘It’s early days for Myer, so the next 12 months will be telling.’

Dr Mortimer warned that Myer’s fashion and homewares brands could continue to struggle due to the cost-of-living crisis and the likes of Target and Kmart entering those markets.

‘Discretionary spending is down because people are more focused on paying their rent or mortgages and getting food on the table,’ he said.

‘Brands such as Dotti are highly exposed to international fast fashion retail killers such as Shein and Temu.’

‘If they want people to spend in-store, it will require some cost-of-living relief.

‘Myer also needs a clearer value proposition on their breadth of apparel brands.’

Myer executive chairwoman Olivia Wirth (pictured with Premier Investments’ Solomon Lew) described 2024-25 as a transition year for the retail giant 

It’s not all not doom and gloom with Myer Retail recording a 22.9 per cent jump in online sales in the last financial year.

The retail giant also revealed that group sales for the first seven weeks of the 2025-26 year are 3.1 per cent up compared to the same period last year. 

‘We are cautiously optimistic about the year ahead, with emerging pockets of improving consumer strength,’ Ms Wirth said.

‘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.’

The former Qantas loyalty chief executive is also leading a new group strategy to slash $30million in costs and expansion of the retailer’s popular Myer One loyalty scheme to the new apparel brands.

‘In executing our Myer Group growth strategy, we are moving at pace and gaining early traction, including the launch of Myer One at Apparel Brands in August, the overall Myer One relaunch on track for October, Just Jeans’ new format store rollout, as well as introducing new brand partners and welcoming back brands returning to Myer,’ Ms Wirth added.

The next 12 months will be crucial in the future of Aussie department store chain Myer according to retail expert Gary Mortimer

Sales for Myer’s newly acquired brands Just Jeans, Jay Jays, Jacqui E, Portmans and Dotti were either flat or declined during the second half of 2024-25

Myer was founded by Sydney Myer, who opened the first store in Bendigo in country Victoria in 1900.

Its first Melbourne store in 1914 built the foundation of Australia’s largest chain of department stores.

Today, the Myer Group operates a network of more than 750 department and specialty stores across Australia and New Zealand.

In recent years it has shut down  flagship outlets in Hornsby, Brisbane CBD, Belconnen in Canberra, and Melbourne’s Knox.