Myer has flagged a drop in profit for this fiscal year, largely due to underperformance at its three specialty brands amid macroeconomic challenges.

The department store chain expects net profit after tax of between $50 million and $54 million for FY24, compared to $71.1 million in the prior year. 

The company attributed this to the underperforming Sass & Bide, Marcs and David Lawrence labels amid a weak trading environment and additional discounting. The underperformance of these brands is expected to represent approximately half of the year-on-year decline in profit, the retailer added.

Other headwinds affecting profit growth include the challenging consumer and trading environment, store closures, and inflationary cost pressures.

In response to the current conditions, the company will focus on optimising performance by tightly managing costs and inventory and fully leveraging its loyalty program, said executive chair Olivia Wirth.

Myer forecasts full-year sales to decrease 2.9 per cent to $3.266 billion, reflecting the closure of the Myer Brisbane City and Frankston stores. Group same-store comparable sales are expected to be up 0.4 per cent.

The company will release its FY24 results next month, following board approval and completion of the annual audit.