Why are Myer shares rocketing 9% on Wednesday?

Myer Holdings Ltd (ASX: MYR) shares are leaping higher today.

The All Ordinaries Index (ASX: XAO) department store owner closed yesterday trading for 17.5 cents. In morning trade on Wednesday, shares are changing hands for 19 cents apiece, up 8.6%.

For some context, the All Ords is up 0.3% at this same time.

This outperformance follows the release of Myer’s full-year FY 2026 results.

Here are the highlights.

Myer shares jumping higher

For the 12 months to 25 July, Myer reported total sales of $4.09 billion, up 0.7% from FY 2025 on a comparable basis.

The company’s cost of doing business (CODB) came in at $1.19 billion, which management said reflected the inclusion of Myer Apparel Brands and investments to drive strategic priorities.

Myer shares are soaring today, despite the company reporting underlying earnings before interest and tax (EBIT) of $139 million, down 7% year on year on an actual basis and 23.5% lower on a pro forma basis.

On the bottom line, the department store reported underlying net profit after tax (NPAT) of $42.5 million, down 2.9% on an actual basis and down 32.1% on a pro forma basis.

With profits sliding, Myer will not pay a final FY 2026 dividend. The company paid a fully franked interim dividend of 1.5 cents a share on 21 May.

As for the first eight weeks of FY 2027, Myer’s comparable sales are up 0.2% while actual sales are 2.7% lower than the first eight weeks of FY 2026.

What did management say?

Commenting on the results that are lifting Myer shares today, chair Olivia Wirth said, “The second half of FY26 was characterised by a volatile and significantly more challenging macroeconomic and retail environment than 1H26 or FY25.”

Wirth added:

While our performance in the first four months of 2H26 was mixed, including a stronger May, we observed a material downturn in consumer sentiment. This was particularly evident in June and July, adding to subdued consumer sentiment and weak discretionary spending.

Despite these challenges, we continued to progress our Myer Group Growth Strategy, Value Creation program and integration activities.

Can Solomon Lew revive Myer shares?

Even with today’s gains factored in, Myer shares remain down 60.4% since this time last year.

But the company appears to be banking on the return of billionaire investor Solomon Lew to help turn the ship around.

In a separate announcement this morning, Myer revealed that Lew has been appointed to the board as a Non-Executive Director, effective tomorrow, 24 September.

Lew, Myer’s largest shareholder, was voted off the board back in 2002.

Commenting on his appointment, Wirth said:

We are pleased to welcome Sol to the board. His deep retail expertise and strong economic alignment to Myer Group as our largest shareholder will be important in helping to drive long-term value creation for all our shareholders.

Sol knows the retail sector inside and out. We are confident that the board and Myer Group will benefit greatly from his vast experience and expertise.

The post Why are Myer shares rocketing 9% on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.