Myer statutory profit plunges to $211m loss in FY25
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More news: Myer was a big loser in morning trade as FY25 statutory profit took a hit from an impairment related to the acquisition of Apparel Brands and the National Distribution Centre faced operational challenges.
At 10:43am AEST, Myer shares had plunged 18.8% to 52 cents per share.
Net profit after tax before significant items fell 30%, while the company faced a statutory loss of $211.2 million.
The National Distribution Centre in Ravenhall, Victoria has faced “significant implementation issues since going live in August 2024”, with challenges in the second half of FY25 having a roughly $4 million impact on earnings before income and tax putting the full-year impact at $16 million.
Following a comprehensive review in the second half of FY25, Myer implemented “temporary mitigation measures” to help fix issues at "stock replenishment and cross-dock facilities”.
A third-party logistics provider will be brought in from October 2025 to support the trading peak at the end of calendar year 2025, while a long-term solution expected to cost $32 million is targeting completion in FY27.
What they said: “FY25 was a transition year for Myer Group as we reset the base to position the business for long-term growth. Despite challenging macroeconomic conditions and tough retail markets in Australia and New Zealand, we achieved positive sales growth in our first period as a combined Group,” Myer executive chair Olivia Wirth said.
She also said that when the National Distribution Centre is fully operating, it will “underpin our omni-channel network strategy and produce substantial cost and efficiency benefits for the business”.
While it was a transition year that faced “challenging macroeconomic conditions and rising costs of doing business”, Wirth flagged that the “first seven weeks of FY26 has been positive and we are cautiously optimistic”.
Myer statutory profit plunges to $211m loss in FY25
The news: Retail giant Myer Group has reported a $211.2 million statutory loss in the year to 26 July 2025 driven by a huge one-off non-cash impairment related to goodwill following the acquisition of Apparel Brands from Premier Investments.
The numbers: The statutory loss is far lower than the $43.5 million profit posted in the corresponding period in 2024.
Net profit after tax came in at $36.8 million, down from the $52.6 million reported in 2024. This excludes $248 million worth of significant items after tax, which is inclusive of the $213.3 million impairment for Myer Apparel Brands due to a higher share price at acquisition close, and a further $34.7 million “reflecting a period of significant transition and merger integration”.
Meanwhile, total sales came in at $3.67 billion in 2025, up 12.5% compared to 2024.
No final dividend was declared for 2025.
The context: Myer completed the acquisition of Apparel Brands, which owned a slew of retail brands including Just Jeans, Jay Jays, Portmans, Dotti and Jacqui, was approved by shareholders in January. This was paid for in 890.5 million new Myer shares, which were subsequently distributed to Premier Investments' shareholders.
