* Underlying FY net profit A$67.9 mln vs est. A$66-70 mln
* Sales for first six weeks of FY2018 below expectations
* Final dividend down to 2 Australian cents, from 3 cents in 2016 (Adds quotes, details on store closures, competition)
Sept 14 (Reuters) - Australia's biggest department store operator, Myer Holdings Ltd MYR.AX , said on Thursday underlying annual net profit fell for a seventh straight year as intense competition and soft retail spending took a toll.
Underlying net profit was A$67.9 million ($54.20 million) for the year to July 26, down 1.9 percent from A$69.3 million the previous year, Myer said in a statement. The result was at the lower end of the company's earlier guidance. are obviously disappointed to have not reached our target of exceeding last year's NPAT of A$69.4 million, and that progress against our metrics that matter is slower than we anticipated," Chief Executive Richard Umbers said in a statement. result does not include one-off items such as the A$6.8 million cost of writing off Myer's stake in the Australian franchisee of British retailer Topshop.
Sales fell 2.67 percent to A$3.2 billion for the year. The company also said that sales for the first six weeks of its fiscal 2018 were below its expectations.
Australian department stores have been caught in a pincer of wage stagnation and fierce competition from "fast fashion" groups like H & M Hennes & Mauritz HMb.ST and Inditex 's ITX.MC Zara, and online players like ASOS Plc ASOS.L . to the pressure is U.S. giant Amazon.com Inc AMZN.O , which unveiled plans this year to open an online shopfront service in Australia. The move has forced Australia's bricks-and-mortar retailers to speed up the development of digital platforms.
Myer has said it would spend A$600 million over five years to shut underperforming stores, revamp others and improve online offerings. Thursday it said it had shut three stores, would not renew leases at three more, and had received "space handbacks" at others.
The owner of Australia's No. 2 department store chain David Jones, South Africa-listed Woolworths Holdings Ltd WHLJ.J last month posted its first decline in annual profit since 2009, blaming competition in Australia. cut its final dividend to 2 Australian cents, from 3 cents the previous year. ($1 = 1.2528 Australian dollars)