Retailer Myer Group has delivered net profit for 2008 up almost 40 per cent, and has forecast improved profitability by mid-2010.
The unlisted group on Monday reported net profit for fiscal 2008 of $93.579 million, up from $73.432 million in the prior year.
Revenue from sales of goods was $2.94 billion, down from $3.002 billion, while total sales were $3.32 billion, up from $3.289 billion.
Myer's cash cost of doing business fell 2.8 per cent to $1.057 billion - 124 basis points down on 2007, the company said.
Comparable store sales were up two per cent.
Myer said tough market conditions would continue, with fiscal 2009 profit likely to be similar to 2008.
But the company said it was "on track to deliver improved profitability with (earnings before interest and tax) of seven cents in the dollar by mid-2010".
This coincided with the end of the company's planned turnaround phase and the beginning of its planned growth phase, the company said.