(Adds CEO comment, dividend and sector detail)
SYDNEY, Aug 24 (Reuters) - Retail and resources conglomerate Wesfarmers Ltd WES.AX , Australia's No.1 company by sales, has recorded its worst net profit in 15 years due to impairment charges linked to an overhaul of discount department stores and lower coal prices.
Net profit for the owner of the Kmart and Target store chains, as well as Australian supermarket operator Coles and home improvement business Bunnings, slid 83 percent to A$407 million ($309.85 million) in 2015-16, down from A$2.44 billion a year ago. The result missed an average forecast of A$1.2 billion from eight analysts polled by Thomson Reuters I/B/E/S.
The subdued growth in the supermarket business reflects Australia's tepid economy, where wage growth is stagnant and sales sluggish. also reported falling revenue in its industrial and resources divisions. This was offset by double-digit growth in its home improvement department.
"The performance of the industrials division during the year was significantly affected by depressed conditions across the resources sector," managing director Richard Goyder said in a statement.
"Excluding Target, the retail portfolio delivered growth in earnings before interest and tax of 7.5 per cent."
Wesfarmers, Australia's 9th-biggest company by market value, had not given earnings guidance. But in May it flagged impairment charges totaling as much as A$2.2 billion against its coal business and Target stores it is overhauling in the face of competition from European fast-fashion chains. company booked a total of $A1.8 billion in impairment charges against its 2016 results, and if those are excluded, Wesfarmers profit was A$2.25 billion, down 7.7 percent on the corresponding period a year ago.
The Perth-based company announced a final dividend of 95 cents, for a total dividend of A$1.86, less than the corresponding period last year when the total dividend was A$2.
($1 = 1.3135 Australian dollars)