Discount department store Kmart has posted a 0.6% drop in comparable sales for the first half of 2019.
Kmart's total sales rose just 1% for the period, with the weak result partly attributed to a lull in womenswear sales.
The shock result follows a bumper five year sales run, under the leadership of outgoing executive Guy Russo.
In a statement to shareholders, the company said it had experienced moderated growth through the latter part of November and December.
These months represented a "significant" trading period for department stores.
Sister brand Target, also owned by Wesfarmers, increased its comparable sales by just 0.5% for the period.
The results will see earnings for the group’s department store division fall to between $385 million to $400 million in the six months to December, 2018.
This is compared to $415 million for the same period in 2017.
Further details will be provided at Wesfarmers’ half-year results, which will be announced on February 21.
Wesfarmers MD Rob Scott said the Group’s overall performance continued to reflect the strength of its diverse portfolio of businesses and interests.
“All of our businesses continue to deliver a compelling offer to their customers and Wesfarmers enters the new calendar year with a strong balance sheet and operating business es well positioned for the future."