Myer Holdings (ASX:MYR) Is Down 28.2% After Swinging to a Full-Year Net Loss – Has The Bull Case Changed?

• Myer Holdings Limited reported its earnings for the full year ended July 26, 2025, revealing sales of A$3,008.7 million compared to A$2,644.4 million a year earlier and a net loss of A$211.2 million, reversing last year’s net income of A$43.5 million.
• This significant move from profitability to a substantial loss despite higher sales highlights shifting cost and margin pressures faced by the company.
• We’ll explore how this earnings swing and margin challenge may reshape investor perspectives on Myer Holdings going forward.

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What Is Myer Holdings' Investment Narrative?

To own Myer Holdings shares right now, an investor needs to believe in a turnaround story that leans on revenue momentum and fresh leadership, even as recent results have reset short-term expectations. The move from profit to a A$211.2 million loss despite higher sales changes the risk-reward equation, with margin pressures now at center stage. Previously, market optimism relied on forecast profit growth and better shareholder value, underpinned by perceived undervaluation and strong revenue forecasts. The quarterly share price drop of more than 50% after the latest report signals that this loss was not priced in and puts immediate focus on management’s ability to get costs under control. Key upcoming catalysts like the Annual General Meeting and new executive appointments carry more weight now, given that operational risks and board inexperience loom larger following these results. Yet, even with new leadership, investors should watch closely how quickly Myer can address its widening losses.

Despite retreating, Myer Holdings' shares might still be trading 8% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

The Simply Wall St Community’s three fair value estimates for Myer Holdings range widely, from A$0.20 up to A$0.77 per share. This broad range reflects sharply differing expectations across private investors. With uncertainty heightened by Myer’s recent shift into a significant loss, the persistence of margin pressure shapes risk and keeps the company’s outlook up for debate.

Explore 3 other fair value estimates on Myer Holdings - why the stock might be worth as much as 64% more than the current price!

Build Your Own Myer Holdings Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Myer Holdings research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Myer Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Myer Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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