Myer (ASX:MYR) Shares Confront Margin Pain Despite Record Sales

Myer Holdings went into this result with its share price under pressure, down roughly 43% over three months and closing at A$0.175 on 23 September. The stock trades as if the department store story is tired. The latest numbers tell a tougher twist. Management delivered record sales above A$4.0b and group comparable sales growth of 0.7%, yet the headline is margin pain feeding through to a full year loss from continuing operations of A$276.5m.

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FY 2026 Earnings Summary

• Revenue (FY 2026 vs. FY 2025, Trailing 12 Months): A$3,369.0m vs. A$3,008.7m (up 12.0%)
• Net Income / Loss from Continuing Operations (FY 2026 vs. FY 2025, Trailing 12 Months): loss of A$276.5m vs. loss of A$211.2m (loss widened)
• Basic EPS (FY 2026 vs. FY 2025, Trailing 12 Months): loss of A$0.16 per share vs. loss of A$0.164937 per share (slightly smaller loss per share)
• Operating Gross Profit (FY 2026 vs. FY 2025, Actual Basis): above A$1.6b vs. a lower level in the prior year (profit higher on this basis, with pro forma earnings below FY 2025 due to mix and cost pressure)

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Myer’s Bullish Story Meets Margin Reality

Supporters of Myer Holdings often point to brand strength and a broad product mix. The latest figures do give that view some backing. Revenue of A$3,369.0m on a trailing 12 month basis and record sales above A$4.0b show customers are still spending with the retailer. Comparable sales growth of 0.7% for the group, and higher operating gross profit above A$1.6b on an actual basis, suggest the business can still pull volume and gross profit even while it works through cost and mix issues.

Bear Case Sharpened By Widening Losses

Concerns about a structurally pressured department store model find plenty of fuel in these results. Myer Holdings reported a loss from continuing operations of A$276.5m on a trailing 12 month basis, wider than the A$211.2m loss. Promotional intensity and cost inflation left pro forma earnings below FY 2025 despite the larger sales base. That combination of higher turnover and heavier loss points to a fragile profit engine and helps explain why the share price has fallen about 43% over 90 days.

Reveal whether Myer Holdings’ record A$4.0b sales, A$3,369.0m trailing revenue and heavier A$276.5m loss have analysts leaning into a turnaround story or marking down expectations. Compare that internal progress with external sentiment in the consensus price target analysis for Myer Holdings

Take Charge Of Your Next Move

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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