Myer’s trading update signalled a sales deterioration in June and July which dragged sales down 1.8% in 2H26e. The negative impact of promotional activity on gross margin offset tight cost management which drives our forecast FY26e EBIT of $146 million, down 16% on a proforma basis.

Premier Investments and Myer today confirmed the proposal to merge Premier Apparel Brands and Myer. Premier shareholders will receive 7.2 Myer shares at a post synergies 13.0x PE valuation. Premier Investments retains high margin Peter Alexander and Smiggle and an investment in Breville.