Myer Ltd (ASX: MYR) shares fell heavily in early trade after the company reported challenging trading conditions with consumer sentiment at its lowest levels in recent times.
Image source: Getty Images
Cost-of-living pressures hit Myer sales
Myer reported total sales for the financial year to the end of June of $4.089 billion, up 11.3%.
However, once the integration of the former Premier Investments Ltd (ASX: PMV) apparel brands, which Myer bought in early 2025, was accounted for, pro forma total sales were up just 0.3%.
The company said in a statement to the ASX that it expects to report operating gross profit for the full year of about $1.601 to $1.607 billion, up about 13.8% to 14.3% on an actual basis, and down about 2.1% to 2.5% on a pro forma basis, "reflecting higher than planned promotional activity to stimulate demand''.
The cost of doing business was broadly in line with the company's target, it said.
The company added:
Trading throughout 2H26 has been volatile on a month-to-month basis with sustained cost-of-living pressures driving consumer sentiment to its lowest levels in recent times. These pressures have included the inflationary effects of higher fuel prices arising from the Middle East conflict, three interest rate increases in CY26, slower household income growth, a weaker housing market and financial uncertainties for many households. Despite mixed trading month-to-month for Myer Group, including a strong recovery in May, these impacts have compounded in June and July, significantly constraining household budgets and consumer spending. This has been further compounded by a warmer than average start to winter in most of Australia's major cities.
The company said it sought to stimulate demand by increasing promotional activity, but it had not been sufficient to offset weak underlying consumer spending.
Myer said it now had a record 5.3 million members in its loyalty program.
Positioning for growth in the future
Myer Executive Chair Olivia Wirth said regarding the results:
Whilst performance in the first four months of 2H26 was mixed, including a stronger May, we observed a material downturn in consumer sentiment. This was particularly evident in June and July, resulting in a subdued consumer and weak discretionary spending. Despite these challenges, we have continued to make substantial progress executing against our Myer Group Growth Strategy and progressing our Value Creation program and integration activities. We continued to strengthen the business, achieving record loyalty engagement and tag rates, expanding our brand and product offering, launching our retail media platform, progressing our store network optimisation program, implementing a new Marketplace platform and delivering value creation benefits and further integration synergies. While we remain cautious on the near-term consumer outlook, we are confident that the strategic actions we are taking today are strengthening the Group's competitive position, resilience and supporting the creation of long term shareholder value.
Myer shares were 8% lower at 23 cents in early trade.
The company will release its full-year results in September. Myer is valued at $432.7 million.
