(Reuters) -Australia’s Myer Holdings on Tuesday swung to a loss for fiscal 2025 after incurring a one-off, non-cash impairment for Myer Apparel Brands goodwill.
Shares of the company dropped as much as 23.4% to A$0.49, their lowest level since late-November, 2023. The broader S&P/ASX 200 benchmark index was up 0.2% by 0043 GMT.
The department store chain incurred an impairment of A$213.3 million ($140.67 million) relating to the acquisition accounting of its apparel business, which was acquired in June 2024.
Including first sales contribution from Apparel Brands, Myer’s total sales growth on a pro forma basis was 0.5% during the fiscal year, owing to challenging macroeconomic conditions and tough retail markets in Australia and New Zealand, which was reflected in subdued consumer demand, the company said.
While its total sales momentum increased for the first seven weeks of fiscal 2026 by 3.1% compared to a year before, Myer flagged that pressures related to the cost of doing business are expected to extend into fiscal 2026 from 2025.
Operational and technological challenges at the group’s national distribution centre in Victoria will continue to weigh on its financial performance in the first half of 2026, Myer added.
Myer Holdings reported a statutory net loss after tax of A$211.2 million for fiscal 2025, versus a profit of A$43.5 million a year before.
($1 = 1.5163 Australian dollars)
(Reporting by Sherin Sunny in Bengaluru; Editing by Alan Barona)
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