Myer Holdings suffers major setback: Loss for fiscal year 2025

The long-established Australian department store chain Myer Holdings had to report a loss in the fiscal year 2025 after the company had to accept a one-time, non-cash impairment related to the goodwill of Myer Apparel Brands. This led to a dramatic plunge in Myer shares, which fell by up to 23.4% to 0.49 AUD—the lowest level since the end of November 2023. In contrast, the broader S&P/ASX 200 index rose by 0.2%. An impairment amounting to 213.3 million AUD (approximately 140.67 million USD) significantly impacted the company's financial statements. This relates to the accounting of the clothing division acquired in June 2024. Despite this setback, Myer achieved modest revenue growth of 0.5% on a pro forma basis, thanks to the first sales from Apparel Brands. Demand was dampened by unfavorable macroeconomic conditions and challenging retail markets in Australia and New Zealand. However, for the first seven weeks of the fiscal year 2026, Myer recorded a sales growth of 3.1% compared to the previous year. Nevertheless, the company warned that the burdens of business costs from 2025 could persist into 2026. Operational and technological difficulties at the national distribution center in Victoria will continue to affect financial performance in the first half of 2026. For the fiscal year 2025, Myer Holdings had to accept a net loss after tax of 211.2 million AUD, while in the previous year, a profit of 43.5 million AUD had been achieved.