Myer has seen net profit freefall 80% to $11.9 million for the 2017 financial year.
Underlying net profit before one-off costs, slipped 1.9% to $67.9 million while sales fell 1.4% to $3.2 billion.
The result was impacted by restructuring costs, reduced discounting, brand writedowns and store closures.
Myer CEO Richard Umbers said the restructuring would deliver a leaner, more productive and efficient retailer.
"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."
Sales in the online business were up 41.1% for the year. Omni-channel sales, which include transactions via 2,500 iPads in store, reached $177 million and represent 8.2% of total sales.
Click & Collect has also grown to represent 15% of orders in July, 2017.
Euromonitor senior research analyst Hianyang Chan said it would be a challenging time for the retailer.
“Myer continued to struggle within the department stores category to create a defined position in the competitive and challenging retail environment.
"It has been a year of transformation for Myer as they aim to lift top-line sales by experimenting with a number of initiatives such as off-price retailing, writing off its stake in the Topshop brand, a partnership with AfterPay, streamlining private labels, acquiring brands such as Marcs and David Lawrence and optimising store footprint.
"The inexorable march of technology has wired its way into the retail sector and e-commerce giants such as Amazon, Alibaba and Rakuten are formidable powerhouses that are disrupting retail businesses globally, and categories such as consumer electronics and appliances, home and garden, apparel, accessories and footwear are increasingly migrating online.
"The impending arrival of Amazon will pose a threat to most major retailers and Myer will be no exception.
"Amazon’s closed system allow a consistent and high quality consumer experience that will potentially win over many consumers in Australia and steer them away from traditional bricks and mortar stores.
"In a highly competitive, fast moving industry where consumers’ expectations and demands change rapidly, it is expected that Myer will continue to push to offer even leaner, faster responses to consumers’ demands, embarking on innovative marketing campaigns and further enhancing their omni-channel offerings to improve customers’ shopping experience.”