David Jones says weak consumer sentiment has contributed to a continued decline in sales from its department stores.
The department store owner recorded a 1.2 per cent dop in sales for the 2012/13 financial year, with total revenue of $1.85 billion.
Sales revenue for the company's fourth quarter, which ran from April 28 to July 27, was $450 million, down 1.3 per cent from the same period last year.
The company said it continued to face a challenging retail environment due to weak consumer sentiment and aggressive discounting from other retailers.
Chief executive Paul Zahra said the company was focused on improving its margins and reducing the level of its discounting.
"I am pleased to report that following 15 months of reducing the depth and breadth of our discounting, we believe we now have a promotional program which reflects the right mix of discounting versus full margin sales periods," he said.
Mr Zahra said the recently announced agreement David Jones had reached to transfer control of its loss making electronics division to retailer Dick Smith would help improve its results in 2014.
"Effectively, what has been an underperforming category for us will now be a profit contributor," he said.
He said with consumer sentiment expected to remain subdued for the next 12 months, the company would continue to focus on lifting margins and cutting costs.