Myer Earnings: Easing Trading Momentum Underperforming Peers

No-moat Myer’s underlying net profit after tax of AUD 53 million in fiscal 2024 was within its guidance range. However, sales growth in early 2025 has surprisingly softened. We expect tax cuts, energy rebates, higher wages, and a greater number of employed Australians to underpin a near-term recovery in retail sales in fiscal 2025. While the Australian discount department store sector has, on average, seen better trading conditions in the months of July and August, Myer’s sales momentum is weakening. In the first seven weeks of fiscal 2025, Myer’s comparable sales growth was flat on the previous corresponding period, or PCP. In the second half of fiscal 2024, its department stores had posted a 1% increase in comparable sales on the PCP.