Myer’s net profit declined 18 per cent to $42 million in the first half, reflecting what the company described as an increase in the cost of doing business.

The department store chain noted incurring higher employee costs, higher support office costs related to a new marketing agency and a separate investment in transformation capabilities.

Sales remained flat at $1.83 billion, attributed to mixed trading conditions, store closures, and Myer Exclusive Brands stock trapped at its national distribution centre.

Comparable sales climbed 0.8 per cent. Meanwhile, online sales rose 4.8 per cent to $409 million, accounting for 22.3 per cent of total sales.

Its active customers grew 6 per cent to 4.6 million, and sales generated by Myer One members shared 79.1 per cent of the group’s sales.

“Despite challenging trading conditions in a tough macro environment and complications experienced at our National Distribution Centre, Myer traded well throughout the all-important Black Friday and Christmas trading periods,” said Olivia Wirth, Myer executive chair.

“In a year of transition, we remain focused on executing our strategic plans to drive growth and attractive shareholder returns.”

During the period, Myer completed its merger with the apparel brands business of Premier Retail.