Myer’s Shares Plunge 12% as Australian Consumer Spending Slows Sharply
Australian Retail Sector Faces Headwinds Amid Economic Uncertainty
July 27 (Reuters) - Australia's Myer said on Monday consumer spending slumped in June and July as economic uncertainty and deteriorating sentiment weighed on discretionary purchases, sending shares of the department store operator down over 10%.
Shares of Myer were down as much as 12%, their lowest level since late October 2020.
Volatile Trading and Dampened Consumer Sentiment
Trading in the second half was volatile on a month-to-month basis, Myer said, adding that consumer sentiment was dampened by higher fuel prices linked to the Middle East conflict, three interest rate hikes in 2026, slower household income growth, a weaker housing market and household financial uncertainty.
Monthly Sales Performance
Total sales declined 5.5% in June and 4% in July from the previous month, Myer said.
Annual Sales and Business Segment Analysis
Preliminary fiscal 2026 total sales rose 0.3% on a pro forma basis, compared with 0.5% growth in fiscal 2025, as lower sales in the Beauty business and fashion chain Portmans offset gains in other categories.
Promotional Activity and Profitability Impact
The company, which owns Myer Retail and Myer Apparel Brands, said increased promotional activity aimed at stimulating demand was not sufficient to offset weak underlying consumer spending.
Myer said preliminary fiscal 2026 operating gross profit was between A$1.60 billion ($1.12 billion) and A$1.61 billion ($1.13 billion), down 2.1% to 2.5% on a pro forma basis, reflecting higher-than-planned promotional activity.
Additional Information
($1 = 1.4296 Australian dollars)
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Mrigank Dhaniwala and Sherry Jacob-Phillips)