Myer, an Australian department store owner, reported a decrease in interim earnings due to challenges at a distribution center in Victoria and costs related to a strategic review. The company also faced a dim outlook because of weak economic conditions. Despite acquiring apparel brands from Premier Investments in January, sales in the first five weeks of the second half of the fiscal year decreased by 2.6%. This led to a 10.5% drop in shares to A$0.68 in Sydney. Total sales were A$1.83 billion, with comparable sales slightly below 1% after the closure of stores in Brisbane and Werribee. Myer's net profit after tax for the 26 weeks ended January 25 was A$42.4 million, an 18.5% decline from the previous year.

Analysts are cautious about the company's future performance, attributing part of the profit decline to distribution center issues. Myer's struggles were evident during major sales periods like Black Friday, Christmas, and Boxing Day, reflecting challenging trading conditions in Australia's manufacturing and retail industries. Despite the completion of a new distribution center in Victoria, which faced operational challenges, shareholders remain concerned about clarity on the company's issues.