(Translation of registrant's name into English)

800 TOORAK ROAD, TOORONGA, VICTORIA, AUSTRALIA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F      X      Form 40-F         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):         

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):          

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pusuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes              No      X  

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

Coles Myer Ltd.

ABN 11 004 089 936

800 Toorak Road, Tooronga, 3146

Telephone (03) 9829 3111

Facsimile (03) 9829 6787

Postal Address: PO Box 2000, Glen Iris, 3146

News Release

Underlying earnings are expected to meet guidance of $785 million.

"This is a good result in a tight retail environment in which the combination of record fuel prices and higher interest rates are influencing consumer sentiment," CEO John Fletcher said.

"In our Food and Liquor business, the trend in headline and comparative sales growth continued to improve, with an encouraging Q4 comparative increase of 2.8% reflecting customers' positive response to improved service and promotional initiatives implemented earlier in the year.

"In non-food, Target and Kmart enjoyed strong fourth quarter sales."

Mr Fletcher said that the first steps had already been taken in implementing the Group's new strategic direction, including the rebranding of Theo's liquor stores and restructuring of the Group's Marketing function.

Mick McMahon, Managing Director of Coles Express and the Coles Myer Liquor Group, would lead a significantly enhanced Marketing function.

"This function will be pivotal in implementing the customer elements of the new Coles everyday needs business and will leverage Mick's extensive experience in strategic retail marketing at Shell," Mr Fletcher said.

"The restructure of the marketing function reflects the two key pillars of our growth strategy - customer intimacy and simplifying the way we do business."

Food and Liquor recorded sales growth of 4.4% for the year, with comparative sales growth up 1.8%.

Kmart's performance improved significantly in the fourth quarter, with an increase of 6.9% headline and 3.1% comparative. Annual sales growth of 1.1% was impacted by record fuel prices which reduced sales across the discount sector.

During the second half Kmart's improved product offer and enhanced marketing program produced very successful Mother's Day, Stocktake and Toy Sale events.

At Kmart Tyre and Auto Service, both sales and earnings were adversely impacted, in line with the automotive industry, due to higher fuel prices affecting discretionary spending.

Target delivered a strong performance for the year, achieving sales growth of 4.3% over the previous financial year (2.0% comparative). Fourth quarter headline sales rose 5.9% with comparative sales up 3.5%.

Target's Mother's Day event and Toy Sale were both well received by customers and helped deliver this strong quarter four result. The progress of menswear and intimate departments was also very pleasing for the quarter.

A continued focus on Target's on-trend, great value and differentiated product is a key driver in continuing business momentum. New product offerings and an accelerated store roll-out program will continue to help maintain growth for Target.

Officeworks delivered sales growth of 1.3% for the year, with annual comparative sales growth of 3.1%. Sales for Q4 continued to be impacted by the restructure of Harris Technology, which otherwise makes good progress in its turnaround. The Harris Technology sales impact will cycle in quarter one FY07.

New store expansion continues to provide Officeworks with excellent growth opportunities, adding three new stores during the quarter, taking the total Officeworks store network to 95, plus eight Harris Technology Business Centres. The Officeworks portfolio will continue to deliver in line with its strategy, with a compelling customer offer, new merchandise initiatives and ongoing business efficiencies.

Myer was sold to TPG-Newbridge Capital during the quarter. Transition arrangements are ensuring business continuity for Myer and a seamless process for customers.

Media Scott Whiffin 03 9829 5548

Analysts John Di Tirro 03 9829 4521

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.

COLES MYER LTD.

(Registrant)

By  /s/  R F BENNETT

(Signature)

ROBERT F BENNETT

COMPANY SECRETARIAT MANAGER

Date August 17, 2006