Net profit for the 53 weeks ended July 31, 2010 was $67.18 million, down from $108.75 million in the previous corresponding period.
Costs associated with the retailer's initial public offering (IPO) in the second half of 2009 contributed to the decline.
Operating profit, which excluded the cost of the IPO, rose 50.4 per cent to $163.53 million.
Myer chief executive Bernie Brookes said the retail sector experienced a challenging environment in the 2010 financial year courtesy of the global financial crisis and weak consumer confidence.
But he said the company would benefit from the opening of new stores along with its refurbished flagship store in Melbourne during the current financial year.
"Our performance will benefit from a significant uplift in sales at Myer Melbourne, as well as a full year of sales from our new store at Top Ryde and nine months sales contribution from our new store at Robina," he said.
"In addition, our refurbished Canberra City, Charlestown and Garden City stores are due to relaunch ahead of Christmas 2010."
Shares in Myer gained three cents, or 0.76 per cent, to $3.96 by 1016 on Thursday.
Earnings before interest and tax (EBIT) rose 14.9 per cent to $271 million, which was $10 million ahead of its prospect forecast.
"Against this backdrop, and despite an extensive rebuild of our flagship Melbourne store, the refurbishment of three other stores and the rollout of major technology infrastructure ... Myer reported a positive sales result," Mr Brookes said in a statement.
The performance of the company during fiscal 2010 benefitted from an improved business model, Mr Brookes said.
"After 50 months of fundamental business transformation, we have a significantly more efficient and profitable platform from which to grow," he said.
"We have reached an important milestone, however, the journey is far from over and the team and I are excited about delivering on our growth promise and increasing returns to shareholders."
The company announced a final dividend of 11.5 cents a share, fully franked, for a full-year dividend of 22.0 cents, above the prospectus forecast range of 20.5 to 21.2 cents a share.
