Myer reports second-half sales decline amid low consumer sentiment
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The news: Myer has reported a 11.3% increase in full-year total sales to $4.1 billion, million even as it faced a 1.8% decline over the six months to 25 July 2026 amid low consumer sentiment and the inflationary impact of the US-Iran war-related fuel price shock.
The numbers: Myer told the exchange in a preliminary and unaudited trading update on Monday that cumulative group total sales fell 1.8% between February and July 2026 compared to the preceding period.
Meanwhile, operating gross profit for FY26 is expected to be in the range of $1.601 billion and $1.607 billion and the cost of doing business percentage is expected to be in line with the FY26 target of about 29%.
The context: Myer said second-half trading had been volatile on a month-to-month basis amid low consumer sentiment driven by cost of living pressures, fuel price shocks, three interest rate rises in 2026, slower household income growth, a weaker housing market and financial uncertainty for households.
Sales growth had recovered in May, with a 3.9% month-on-month increase, but Myer said the impacts outlined above “compounded in June and July”. The group also said promotional activity as well as “value creation and integration synergies” were not sufficient to offset weak underlying demand.
What they said: “The second half of FY26 has been characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25,” Myer Group executive chair Olivia Wirth said.
“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.”
The source: ASX
