BREAKING: Myer Holdings Ltd (ASX: MYR) has just announced a dramatic cut to its final dividend, dropping it to zero, while reporting a staggering $211.2 million net loss for the fiscal year 2025 (FY25). This urgent development comes after the iconic retailer faced a challenging year, with only 0.5% sales growth, raising alarms among investors.
The $1.1 billion retailer, which operates in Australia and New Zealand, attributed its losses primarily to significant write-downs related to its new division, Myer Apparel Brands. This loss starkly contrasts with the $36.8 million underlying net profit from FY24, marking a 30% decline year-on-year.
During FY25, Myer expanded its portfolio by acquiring five fashion brands from Premier Investments, including Just Jeans and Jay Jays. This strategic move involved issuing 890.5 million new shares to Premier, which subsequently contributed $82 million back to Myer. However, the integration costs have led to an additional $34.7 million in negative items, highlighting the tumultuous transition period for the company.
Myer’s Chief Executive Officer, Olivia Wirth, described FY25 as a “transition year,” emphasizing the company’s resilience amidst tough market conditions. “Despite these challenges, we achieved positive sales growth in our first period as a combined Group,” Wirth stated.
Looking ahead, Myer is optimistic about the future. Wirth revealed that trading has improved over the first seven weeks of FY26, with emerging signs of consumer strength. Myer plans to relaunch its Myer One loyalty program in October 2025, aiming to leverage its record membership of 4.7 million to boost sales.
However, the company has provided no guidance on when dividend payments might resume, leaving shareholders anxious about future returns. Myer’s total sales for FY25 reached $3.67 billion, but the outlook remains uncertain as the retail giant navigates ongoing macroeconomic pressures.
As Myer implements its comprehensive Myer Group Growth Strategy aimed at sustainable growth through 2029, investors are left to ponder the implications of this major loss and dividend cut. Will Myer be able to turn its fortunes around? Only time will tell.
Stay tuned for more updates on this developing story. Share your thoughts on Myer’s future in the comments below!
