Soft consumer drives weaker than expected trading update

Research evidence excerpt

Soft consumer drives weaker than expected trading update

Update

July 26, 2026 11:20 PM GMT

Morgan Stanley Australia Limited+MMyer Holdings Ltd | Asia Pacific Julia M de Sterke

Equity Analyst

Soft consumer drives weaker Julia.De.Sterke@morganstanley.comMelinda K Baxter +61 2 9770-1658

Melinda.Baxter@morganstanley.com +61 2 9770-1176

than expected trading update Mac Ross, CFA

Mac.Ross@morganstanley.com +61 2 9770-1579

FY26 Myer sales growth +0.7% (Cons +2%), Apparel brands sales growth -1.3%

(Cons flat).

Sales impacted by: i) higher fuel prices; ii) rate rises; iii) associated household income

pressures; iv) warmer-than-average start to winter. Commentary broadly consistent

with our channel checks, which suggests a soft consumer has been compounded by

Myer Holdings Ltd (MYR.AX, MYR AU)

weather and more aggressive discounting from Amazon through Prime Day in July.

Australia Consumer | Australia

FY26 GP guide A$1,601-1,607mn (~2.6% below cons) impacted by higher promo Stock Rating Overweight

Industry View Cautious

activity; CODB guide ~29% of sales maintained. Price target A$0.55

Up/downside to price target (%) 120

“Myer Group sought to stimulate demand by increasing promotional activity and Shr price, close (Jul 24, 2026) A$0.25

52-Week Range A$0.70-0.23

whilst Value Creation and Integration Synergies have supported performance, it has Sh out, dil, curr (mn) 1,731

not been sufficient to offset weak underlying consumer spending.” Mkt cap, curr (mn) A$433

EV, curr (mn) A$465

Avg daily trading value (mn) A$3

FY26 results expected in September, finalisation of results has commenced "which

Fiscal Year Ending 07/25 07/26e 07/27e 07/28e

will include assessment and measurement of any impairment and additional

EPS (A$)** 0.029 0.036 0.054 0.065

Significant Items".