Department store giant Myer has made an underlying net profit of $67.9 million, down 1.9 per cent on last year, and has lost ground in sales amid weak consumer spending.

The retailer's statutory net profit for the 52 weeks to July 29 of $11.94 million, was down 80.3 per cent on the previous 53-week year, hit by $13.9 million in costs and significant items of $42.1 million.

Total sales slid 2.67 per cent to $3.2 billion, reflecting the closure of three stores, the write-off in the value of its 20 per cent stake in Topshop's Australian franchisee and the impairment in the value of its struggling sass & bide brand.

CEO Richard Umbers said that the Myer business was in the process of diversifying its sales across online channels, which will reap profits in the future.

"We are obviously disappointed to have not reached our target of exceeding last year’s NPAT of $69.4 million and that progress against our metrics that matter is slower than we anticipated," said Umbers.

"However Myer has become a leaner, more productive and efficient retailer, better placed to compete in a rapidly changing environment.

"In the year ahead we will be rolling out further initiatives particularly in our strongly performing omni-channel business in anticipation of a further wave of change in consumer and competitor behaviour."

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Umbers also announced that Myer would not renew its leases at several key locations around the country in an effort to consolidate the business' physical retail space.

"We continue to make significant progress in our productivity agenda with a 24,368m2 reduction in space resulting from store closures at Wollongong, Brookside and Orange, space handback at Cairns and Dubbo as well as a space hand back of 50 percent at our Queensland DC and over 30 percent of our support office floorspace," said Umbers.

"Today we are announcing that we will not be renewing leases at Colonnades, Belconnen and Hornsby. Since the launch of New Myer in September 2015, we have closed or announced the closure of 74,670m2 of store space overall."

The Myer board determined a final dividend of 2 cents per share, with a full-year dividend of 5 cents per share fully franked.

With AAP.