Myer records modest group sales growth as loyalty and online gains offset challenges

Retailer Myer Holdings (ASX: MYR) has reported a modest sales increase from the Myer Group for the second half of FY 2025.

Given the group is in a year of transition, Myer considers the 1.9% increase in total sales to $837.2 million for the period a positive outcome.

However, while overall sales were positive, Myer’s apparel brands turned in a disappointing performance.

Numerous impacts

Myer Group executive chair Olivia Wirth said a number of market-wide and company-specific factors had played a part in the year-to-date financial performance.

These included margin pressure from heightened promotional activity observed across the broader retail sector, increased costs of doing business and unfavourable foreign exchange movements.

Myer Group’s comparable sales for the period were up 1.5% on the previous corresponding period (pcp), while online sales increased 9.0% and represented 21.4% of total sales.

Total apparel brands sales were down 3.9% on the pcp to $211.2m, with comparable sales down 3.7% and online sales down 3.5%, while representing 16.8% of total sales.

Sales mix shift

A sales mix shift to concession also affected the group’s financial performance.

Automation and integration ramp-up issues at the company’s new National Distribution Centre (NDC) further impacted the half, with the company completing a comprehensive review to identify the issues during the period.

Ramp-up complexities and remediation at the NDC, located in Ravenhall, Victoria, have increased costs and delayed the realisation of expected benefits.

Challenging conditions

“Despite challenging trading conditions compounded by a subdued retail environment in the lead-up to the May federal election, Myer has reported growth in its year-to-date sales,” Ms Wirth said.

“This was driven by our strong Myer One loyalty program, which has a record 4.6 million active members and a 79% tag rate, as well as our strong online performance and our diverse mix of categories.”

Ms Wirth said that cost-of-living pressures and the current macroeconomic headwinds and uncertainty had led to consumers being cautious and more value-oriented, resulting in volatile trading conditions across the retail sector.

“We remain focused on resetting the business and implementing our strategic growth plan to position Myer Group as an omni-channel retail platform capable of delivering growth during all phases of the economic cycle,” she added.