Harvey Norman made a net profit of $142 million down from $172 million the previous year.
The result was affected by a $41 million writedown in the value of the company’s properties.
Globally, sales were down three per cent during the year, with most of the decline in its Northern Ireland business where total sales were almost halved.
Australian sales were down 4.2 per cent during the year, while sales in Slovenia and Croatia were down 4.6 per cent and Ireland was down 1.2 per cent.
Only the New Zealand business recorded sales growth, with total sales up eight per cent.
But the company said sales had picked up during the second half of the year, and were up 5.3 per cent higher in July compared to a year ago.
It said low interest rates in Australia should help lift sales and consumer confidence this financial year.
“The historical lows we are seeing in the cash rate and home loan rates should be a catalyst to stimulate the housing market and Harvey Norman will be a direct beneficiary of any improvement in the housing market,” the company said in a statement.
“We remain cautiously optimistic about an improvement in domestic retail confidence and look forward to capitalising on any uptick in consumer sentiment.”