Despite rising promotional activity and an increased cost of business, Myer has achieved sales growth, albeit dragged down by the performance of its apparel brands.

The company says its second-half sales rose 1.9 per cent year on year to $837.2 million. Comparable sales were up 1.5 per cent, while online sales rose by 9 per cent to account for 21.4 per cent of overall sales.

Executive chair Olivia Wirth attributed the company’s growth to its Myer One loyalty program, which now boasts 4.6 million active members, strong online performance and a diverse mix of categories.

Myer’s apparel brands saw a 3.9 per cent drop, down to $211.2 million as compared to the same period last year, with its comparable sales down by 3.7 per cent. 

Its apparel brands’ online sales represented 16.8 per cent of total sales but saw a 3.5 per cent decline. 

The company attributed its performance to margin pressures from heightened promotional activity seen across the broader retail sector, increased costs of doing business and unfavourable foreign exchange movements.

Myer’s move sales mix shift to concessions, along with increased costs around ramping-up complexities and remediation at its new national distribution centre (NDC) in Victoria, also impacted its financial performance for the second half of this year. 

The company will be introducing a third-party logistics operation, with Toll supporting the business from this June to reduce reliance on store networks for online order fulfilments, with its distribution centre slated to handle 10 to 15 per cent of online orders. 

“While recognising FY25 is a year of transition for Myer Group, we have taken steps to strengthen our leadership team and are making good progress in implementing our strategy,” said Wirth.