Godfreys says weaker sales and a 36 per cent fall in profit is unacceptable, and has vowed to restore the trust of its shareholders.
The company's net profit of $7.8 million in the year to June 30 was down from $12 million in the prior year, and comparable store sales dropped 10 per cent.
The results sent its share price tumbling, losing 21 cents, or 17 per cent, to $1.02.
Chairman Rod Walker said it was a challenging year for the vacuum cleaner retailer, in which chief executive Kathy Cocovski resigned after less than six months in the role.
The company's previously acknowledged failure to capitalise on a shift in demand from traditional barrel vacuums to stick vacuums hit sales and contributed to a weaker profit, Mr Walker said.
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Shareholders have been disappointed by the company's performance and the board accepts they have work to do to win back their trust, he said.
"We have acted decisively to begin the process of restoring Godfreys to an acceptable level of financial performance," Mr Walker said.
John Hardy, who was the company's chief executive from 1983 to 2008, and the star of its 1990s TV ads, was appointed interim managing director in July.
He said his plan to turn around the company's performance included enhanced training for its marketing team, and filling obvious gaps in its product range.
Godfreys expects its total sales to grow in 2016/17 after adding 10 stores to its network in 2015/16, and upgrading its online services.
"Fundamentally the Godfreys business is sound," Mr Walker said.
"Our financial position remains solid, we have a strong brand and we operate in a market that continues to demonstrate solid growth fundamentals."
GODFREYS FAILS TO IMPRESS:
* Full year profit down 35.5pct to $7.8m
* Comparable store sales down 9.7pct to $179.3m
* Final dividend down eight cents to 3.8 cents.
