Myer Holdings Ltd (ASX:MYR) Reports Half Year 2025 Results
Financial Performance
Myer Holdings Limited (ASX:MYR) reported a Net Profit After Tax (NPAT) of $42.4 million for the first half of 2025, down from $52.0 million in the previous year. Total sales were flat at $1.8 billion, with comparable sales increasing by 0.8%. Online sales rose by 4.8% to $409.0 million, accounting for 22.3% of total sales. The operating gross profit margin decreased by 53 basis points to 35.8%, impacted by a shift in sales mix and additional distribution costs due to National Distribution Centre (NDC) complications.
Operational Achievements
The MYER one loyalty program reached its strongest performance since inception, boasting 4.6 million active members, a 6% year-on-year increase. The tag rate, representing the percentage of total sales generated by MYER one members, stood at 79.1%. Additionally, 453,000 new members were acquired, with 54% under the age of 35. In-store customer satisfaction scores hit a record 85%, up 100 basis points year-on-year.
Strategic Initiatives
Myer has implemented its strategic growth plan, which includes the completion of the Apparel Brands acquisition, the establishment of a new executive management team, and the arrangement of a $150 million debt facility with Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB). The company has also commenced the restructuring of sass & bide, Marcs, and David Lawrence, closing 10 standalone sass & bide stores and beginning the consolidation of support functions.
Dividend Declaration
A pre-completion fully franked dividend of 2.5 cents per share has been declared as part of the Apparel Brands transaction.
Executive Comments
Olivia Wirth, Executive Chair, stated, “We have been focused on resetting the business and positioning the Myer Group as a retail powerhouse. We have concluded our strategic review and started to implement our Myer Group Growth Strategy with the acquisition of Apparel Brands, established our new leadership team and capabilities, arranged refinancing and commenced a restructure of sass & bide, Marcs and David Lawrence. Despite challenging trading conditions in a tough macro environment and complications experienced at our National Distribution Centre, Myer traded well throughout the all-important Black Friday and Christmas trading periods. While consumers remain cautious, we reported growth in our comparable and online sales and I’m pleased to report our MYER one loyalty program delivered a record performance with 4.6 million active members and a 79% tag rate. In a year of transition, we remain focused on executing our strategic plans to drive growth and attractive shareholder returns.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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