Myer Group FY25: Sales up, profitability impacted

Myer Group, in its first period as a combined entity with Apparel Brands, has reported its financial results for fiscal year 2025. The company achieved a 0.5 percent growth in total sales to 3,673.8 million Australian dollars for the year on a pro forma basis, with a 1.7 percent growth in the second half. Profitability was impacted by soft macroeconomic conditions, which led to subdued consumer demand and increased promotional activity.

Myer Group’s EBIT was 13.8 percent lower than the previous year, reflecting a challenging retail environment and increased operational costs. The company reported a net profit after tax (NPAT) of 36.8 million Australian dollars. The statutory NPAT for the year was a loss of 211.2 million Australian dollars, primarily due to a one-off, non-cash goodwill impairment of 213.3 million Australian dollars related to the Apparel Brands acquisition.

Myer Group is continuing to integrate Apparel Brands and is targeting 30 million Australian dollars in annualised synergies by the first half of fiscal year 2027. The company has made progress in several areas, including the launch of its Myer one loyalty program for Apparel Brands and the rollout of new format stores for Just Jeans.

Myer Group has seen a positive start to fiscal year 2026, with total sales for the first seven weeks increasing by 3.1 percent compared to the same period last year. Myer retail sales were up 4.3 percent, while Myer Apparel Brands sales were down 1.3 percent.

Executive chair Olivia Wirth noted that recent interest rate easing has supported retail activity in some sectors, particularly in womenswear and home categories. However, Australian consumers remain cautious, and the retail environment in New Zealand is still subdued. The company has also launched a "Value Creation" program to manage increasing costs and improve productivity. Despite these headwinds, Myer Group is "cautiously optimistic" about the year ahead and expects to see a return on its recent investments.