Department store giant Myer has reported a 37% dive in first half profit to $24.4 million.
The decline was attributed to restructuring costs and the exit of two lucrative brand partnerships: Apple and Country Road.
Total sales dropped 3.8% to $1.6 billion, with total comparable sales growing only 0.4% when excluding Apple and Country Road Group sales.
Country Road departed in the first quarter of fiscal 2020, while Apple products were withdrawn last May.
Myer clocked $15.2 million in first half costs associated with these brand exits, as well as clearance floor closures and redundancy costs after culling 35 head office staff in January.
Without these expenses, net profit would have grown only 0.4% to $41.5 million.
While online sales grew by 25.2% to $168.2 million, this was not enough to counteract the sales slump.
CEO John King confirmed he is two years into a five year turnaroun plan.
"Numerous opportunities remain to improve productivity and further reduce costs particularly in the areas of store occupancy, factory to customer and fulfilment for both stores and online."
This includes reducing its store floor footprint, support office costs and store refurbishments.