Myer Holdings reports a strong first half with total sales up 24.5% and underlying NPAT rising 21.7%, driven by brand expansion and strategic investments. The group’s growth strategy remains firmly on track amid ongoing market challenges.
- Total sales increased 24.5% to $2.28 billion, pro forma up 2.1%
- Underlying NPAT rose 21.7% to $51.7 million despite strategic investments
- Cost of doing business managed within FY26 target of ~29% of sales
- Record MYER one loyalty tag rate and 5.1 million active members
- Myer Apparel Brands integration progressing with $30 million synergy target
Strong Sales Growth Amid Integration
Myer Holdings Limited has delivered a robust first half for FY26, reporting a 24.5% jump in total sales to $2.28 billion. This growth includes the full six months of Myer Apparel Brands, which was integrated into the group last year. On a pro forma basis, which adjusts for the Apparel Brands inclusion in both periods, total sales still rose a modest 2.1%, signalling steady underlying momentum.
The sales uplift was broad-based, with notable strength in Womenswear, Home, Concessions, and the Just Jeans brand. Myer Retail itself grew by 2.4%, while concession sales surged 10.8%, underscoring Myer’s increasing appeal to brand partners and concession operators. Online sales also contributed, growing 18% overall, boosted by a 9.3% rise in the Marketplace platform.
Profitability and Cost Discipline
Operating gross profit climbed 35.1% to $886 million, though pro forma gross profit was flat, reflecting a shift towards lower-margin categories and targeted promotions to clear legacy exclusive brands ahead of a relaunch. Despite these pressures, Myer managed its cost of doing business effectively, keeping it within the FY26 target of approximately 29% of total sales.
Underlying earnings before interest and tax (EBIT) increased 10.5% to $112.8 million, supported by the Apparel Brands acquisition and a higher gross profit rate. However, on a pro forma basis, EBIT declined 17.2%, reflecting ongoing investments in strategic growth initiatives. Underlying net profit after tax (NPAT) rose 21.7% to $51.7 million, buoyed by refinancing benefits and integration synergies, though pro forma NPAT was down 17.3% due to these same investments.
Loyalty and Brand Expansion Driving Customer Engagement
Myer’s revamped MYER one loyalty program is gaining traction, with a record tag rate of 80.9% in Myer Retail and 51.3% in Myer Apparel Brands, alongside an increase in active members to 5.1 million. This expanded loyalty base is central to Myer’s strategy to deepen customer engagement and personalise offerings using AI-driven data modelling.
The company has also bolstered its product portfolio, launching new exclusive brands across beauty, womenswear, and menswear, and securing access to global names such as Fenty Beauty, La Mer, GAP, and TOPSHOP. Early customer feedback on the refreshed exclusive brands has been positive, indicating potential for further growth.
Operational Progress and Outlook
Operationally, Myer continues to optimise its store network, closing underperforming locations while investing in key sites like Myer Morley in Perth and the Sydney City beauty hall. The new Marketplace platform is on track for a May 2026 launch, expected to expand product offerings and enhance omni-channel capabilities.
Supply chain improvements are underway, with third-party logistics arrangements proving effective during peak periods and a significant increase in online order fulfilment from distribution centres. The closure of the Asia sourcing office aligns with a strategy to improve delivery speed and reduce costs through direct-to-factory sourcing.
Looking ahead, Myer remains cautious amid macroeconomic volatility but is focused on delivering value through the right products, competitive pricing, and disciplined cost management. The integration of Myer Apparel Brands is progressing well, targeting at least $30 million in annualised synergies, with additional savings expected from integrating sass & bide, Marcs, and David Lawrence.
Bottom Line?
Myer’s disciplined execution and strategic investments position it well for continued growth, but investors will watch closely for how macroeconomic headwinds impact the second half.
Questions in the middle?
- How quickly will Myer Apparel Brands deliver the targeted $30 million in annualised synergies?
- What impact will the relaunch of Myer Exclusive Brands have on margins and customer loyalty?
- Can Myer sustain online and concession sales growth amid ongoing economic uncertainty?