How did Myer Holdings (ASX:MYR) perform in the first half of FY26?

Myer reported a significant increase in financial performance, with total sales rising 24.5% to $2.28 billion for the half-year ended 24 January 2026. This growth was largely driven by the integration of Myer Apparel Brands and a record-breaking Black Friday period.

Why did Myer Holdings (ASX:MYR) sales grow so significantly this period?

The 24.5% jump in headline sales was primarily due to the strategic acquisition and integration of Myer Apparel Brands into the group's results. On a pro forma basis—which compares the business as if these brands were already owned in the prior year—sales growth was a more modest 2.1%.

Is Myer Holdings (ASX:MYR) currently profitable?

Yes, Myer remains profitable, reporting an underlying NPAT of $51.7 million and a statutory operating gross profit of $886 million. While statutory profits saw double-digit growth, pro forma figures were lower than the previous year due to heavy internal investment in long-term growth initiatives.

What is the current dividend policy for Myer Holdings (ASX:MYR) shareholders?

The board declared a fully franked interim dividend of 1.5 cents per share for the 1H26 period. This represents a payout ratio of 50.1% of earnings, signaling a balance between returning capital to shareholders and retaining funds for business reinvestment.

How healthy is the Myer Holdings (ASX:MYR) balance sheet?

Myer maintains a robust financial position with a net cash balance of $287 million as of January 2026. The company also reported an exceptionally high cash conversion rate of 134%, indicating that earnings are efficiently being converted into actual cash flow.

What was the impact of the Myer Apparel Brands integration?

The integration was the primary driver for the 35.1% increase in operating gross profit, bringing higher-margin vertical brands into the Myer ecosystem. While it added to the Cost of Doing Business, management kept these costs at 27.9% of sales, which is within their targeted 29% limit.

What are the main bull and bear points for Myer (ASX:MYR) after this news?

The bull case focuses on record Black Friday sales, a massive cash pile, and successful vertical brand integration increasing gross margins. The bear case highlights that pro forma NPAT is actually lower year-on-year due to high spending on "strategic initiatives."

How risky is Myer Holdings (ASX:MYR) stock in the current retail climate?

Myer appears more defensive than in previous years due to its $287 million net cash position and disciplined cost management. However, the 2.1% pro forma sales growth suggests that organic growth is low, making the company sensitive to shifts in Australian consumer sentiment.

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Myer H1 sales surge following Apparel Brand integration

Written by Liezl GambePublished Mar 23, 2026, 11:00 PMLast Updated Jul 6, 2026, 10:31 AM

Myer Holdings (ASX:MYR) announced a leap in its half-year financial results for the period ended Jan. 24, bolstered by the integration of Myer Apparel Brands.

The retail giant reported total sales of $2.28 billion, a sharp 24.5% increase compared to the previous year.

The growth was underpinned by a record-breaking Black Friday performance and strong demand across the womenswear, home, and concessions categories.

On a pro forma basis, total sales rose by 2.1%, demonstrating the group's increasing relevance in a competitive market.

The financial highlights reveal an operating gross profit of $886 million, up 35.1%, while underlying EBIT climbed 10.5% to $112.8 million.

Despite the costs associated with strategic initiatives and the inclusion of new apparel brands, Myer managed its cost of doing business effectively at 27.9%, staying within its targeted fiscal parameters.

Underlying net profit after tax reached $51.7 million, representing a 21.7% increase, although pro forma figures reflected the impact of heavy investment in long-term growth priorities.

The group maintains a formidable balance sheet with a net cash position of $287 million, supported by an impressive cash conversion rate of 134%.

The board has declared a fully franked interim dividend of 1.5 cents per share, reflecting a payout ratio of 50.1%.

Myer H1 sales surge following Apparel Brand integration

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