Department store falters after Middle East war impacts

A tough retail environment and challenging economic conditions have driven a major department store operator to another multi-million-dollar loss.

Myer, which owns 56 stores across the country, blamed the result, its second loss in a row, on ongoing cost-of-living pressures weighing on consumer sentiment.

Those included the inflationary effects of higher fuel prices arising from the Middle East conflict, three interest rate increases, slower household income growth, and a weaker housing market.

"While we remain cautious about the near-term consumer outlook, we believe that our strategic actions are strengthening the group's competitive position," executive chair Olivia Wirth said on Wednesday.

Ms Wirth noted that the result was in line with its guidance provided in July, when it pointed to the impact of global events on its sales in the second half of its fiscal year.

Myer posted a fiscal 2026 statutory net loss of $276.5 million, which was worse than the $205 million loss reported in the prior year.

If significant items are excluded, its underlying result was a profit of $42.5 million, down almost three per cent.

Sales, including sales from its in-store concessions, came to $4 billion, which was up 0.7 per cent on a comparable basis.

Myer did not declare a final dividend for the 52 weeks ended July 25, after paying out an interim dividend of 1.5 cents.