# Myer Reports Record Sales but Declining Profits in FY2026 Retail giant sees revenue growth amid profit margin pressures. - **Source:** [All News](https://brifing.si/source/08b8064b-247f-4829-ae25-3602b47f58a9) - **Published:** 2026-09-23 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/fbae7e0f-60b6-41fe-bc88-431c8b1eb670 ## Record sales milestone Myer achieved its highest-ever annual sales in FY2026, demonstrating strong top-line growth despite challenging retail conditions. The department store chain's revenue increase reflects successful category expansions and improved customer engagement strategies. However, this sales growth didn't translate proportionally to the bottom line, indicating underlying cost pressures. ## Profit margin contraction While sales reached record levels, Myer's profitability declined year-over-year. The earnings call revealed compressed margins due to increased operational costs and inventory management expenses. This divergence between sales and profit performance suggests the company is facing structural challenges in maintaining profitability amid rising costs. ## Cost pressure drivers Management cited multiple factors squeezing profits, including higher supply chain costs and increased wage pressures. The company also pointed to elevated marketing expenditures aimed at driving sales growth. These cost increases outpaced the revenue gains, resulting in the profit decline despite record sales figures. ## Digital performance The earnings call highlighted continued growth in Myer's online sales channel, which now represents a significant portion of total revenue. Digital transformation investments appear to be paying off in terms of customer acquisition, though the cost of maintaining this channel may be contributing to margin pressures. ## Inventory challenges Myer reported difficulties in inventory management during FY2026, with higher-than-expected clearance activity impacting margins. The company faced balancing acts between maintaining adequate stock levels and avoiding overstock situations that require discounting, a common challenge in department store retailing. ## Market position Despite profit challenges, Myer maintains its position as a leading Australian department store. The sales growth indicates continued customer demand for its product mix and shopping experience. However, the profit decline raises questions about the sustainability of its current business model in the face of sector-wide pressures. ## Competitive landscape The earnings call addressed increasing competition from both specialty retailers and online marketplaces. Myer's response includes enhanced loyalty programs and exclusive brand partnerships. These strategies aim to differentiate its offering in a crowded market while protecting margins. ## Future outlook Management's guidance for the coming year focuses on balancing growth initiatives with cost control measures. The company plans to optimize its store network and supply chain while continuing digital investments. Investors will watch whether Myer can translate its sales momentum into improved profitability. ## Sources covering this story - https://www.investing.com/news/transcripts/earnings-call-transcript-myer-posts-record-fy2026-sales-but-profit-slips-93CH-4912100 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._