MYR -12%: Out with preliminary FY26 numbers today and they expect sales of around $4.09 billion, with pro forma sales up just 0.3% and comparable sales up 0.7% as cost-of-living pressures weighed on discretionary spending.
Home, womenswear, kids and Just Jeans performed well, while beauty and Portmans were weaker. Trading was particularly volatile late in the year, with a strong May followed by softer conditions in June and July.
The key pressure point was margin. Operating gross profit is expected to fall to around $1.60–1.61 billion as heavier-than-planned promotions and discounting supported sales but reduced profitability. There always seems to be a sale on at Myer these days!
Overall, MYR is defending volumes by reducing prices, which is putting pressure on margins. The near-term outlook remains particularly challenging, and at 22c, MYR’s market cap sits at a chilling $380m, down from $2.4bn when it returned to the ASX in November 2009 at an IPO price of $4.10.
MM is neutral MYR ~22c
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