Myer has recorded a fall in its annual profit and expects the cost of refurbishing stores to impact on this financial year's result.

The department store chain's profit dropped by 8.7 per cent to $127.2 million.

Revenue for the period was 0.8 per cent higher to $3.1 billion.

Myer will pay shareholders an interim dividend of 8 cents.

The company expects this financial year's profit to be affected by one-off renovation costs at three of its biggest stores.

Myer chief executive Bernie Brookes says last financial year's result was hurt by a drop in sales, particularly in May and June.

"A highlight of the result for the year was the further 40 basis point improvement in operating gross profit margin as a result of growth in Myer Exclusive Brands, shrinkage reduction and markdown management, with the majority of gains made in the second half," he said.

Mr Brookes used the announcement to call for regulatory reforms to help Australian retailers.

"All Australian retailers are being impacted by rising employment costs, escalating occupancy and utility costs, and a GST loophole providing an unfair advantage to foreign retailers," he said.

"The sector would benefit from reform to help drive productivity and become more competitive in an increasingly global marketplace."

Myer's share price dropped after the announcement.

At 10:15am (AEST), it had fallen 3.3 per cent to $2.78.

 

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