Myer Holdings Ltd (ASX: MYR) shares are on the move on Tuesday morning.
In early trade, the ASX 300 stock is pushing higher following the release of its half-year results.
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Why is this ASX 300 stock rising today?
Myer's shares are gaining after it reported growth in both sales and earnings for the first half of FY 2026, supported by the inclusion of Myer Apparel Brands and continued execution of its growth strategy.
According to the release, total sales increased 24.5% to $2,279.5 million. On a pro forma basis, which adjusts for the inclusion of Apparel Brands in both periods, sales were up 2.1%.
Operating gross profit rose 35.1% to $886.0 million, while underlying EBIT increased 10.5% to $112.8 million.
The company's underlying net profit after tax climbed 21.7% to $51.7 million, with statutory net profit after tax up 32.8% to $40.3 million.
Myer declared a fully franked interim dividend of 1.5 cents per share, representing a payout ratio of just over 50% and a dividend yield of 5% based on yesterday's close price.
The company also ended the period with a strong balance sheet, reporting a net cash position of $287 million.
Growth strategy gaining traction
Management highlighted progress across its key strategic initiatives.
This includes growth in its MYER one loyalty program, which now has a record 5.1 million active members, as well as the launch of new exclusive brands and partnerships with global names across fashion and beauty.
The integration of Myer Apparel Brands is also progressing well, with the company targeting at least $30 million in annualised synergies.
In addition, Myer is investing in its omni-channel capabilities, with a new marketplace platform on track for launch in May.
Management commentary
Myer's executive chair, Olivia Wirth, was pleased with the half and highlighted the positive momentum across the business. She said:
Our 1H26 result reflects momentum across our business as we continue to implement the Myer Group Growth Strategy. Sales growth was achieved both in store and online, and our disciplined cost management allowed us to make targeted investments including in eCommerce, Marketing, Product, Merchandise and Supply Chain to deliver on our plan.
We achieved our biggest Black Friday on record for Myer Retail, and total sales for the Group through the important trading months of December and January were in line with last year – a good outcome that demonstrates the resilience of the business.
Outlook
The ASX 300 stock provided a trading update with its results, revealing that total sales for the first seven weeks of the second half are up 1.7% compared to the prior corresponding period, with Myer Retail sales up 2.2%.
Looking ahead, Wirth is cautiously optimistic on the company's prospects in the second half, while acknowledging the challenging retail environment. She said:
Looking to the second half, we are excited about building on the Myer Exclusive Brands relaunch, introducing ongoing improvements and enhancements to our MYER one loyalty program, and continuing activities to integrate Myer Apparel Brands, as well as resetting our fashion and beauty offerings."
Given the current volatility in the wider macroeconomic environment and the ongoing pressures on discretionary spending, we are more focused than ever on delivering value for our customers. That's why we are continuing to deliver the right products and brands for the right value and price, focusing on managing our costs and accelerating the momentum of the transformation of the business.
