Australia's largest department store chain Myer on Thursday reported a 19.8 percent slide in first-half net profit, predicting weak to flat sales for the fiscal 2012.

Myer said its net profit after tax (NPAT) fell to 87.3 million AU dollars (91.31 million U.S. dollars) in the 26 weeks to January 28, from 108.9 million AU dollars (113.91 million U.S. dollars) in the prior corresponding period.

Myer's total sales value dropped 1.7 percent to 1.70 billion AU dollars (1.78 billion U.S. dollars) in the first half of fiscal 2012, compared to 1.73 billion AU dollars (1.81 billion U.S. dollars) for the same period a year ago.

Myer Chief Executive Officer, Bernie Brookes said the company' s business had made good progress on delivering its strategic plan in the first half and there were still a number of opportunities to improve the business in the challenging retail environment.

"However, unless the sales trend improves from the current levels, total full year 2012 sales are likely to be below or at best flat compared to fiscal 2011," Myer said in a statement.

The company reconfirmed its full year 2012 net profit after tax guidance of no worse than 10 percent below 2011's 162.7 million AU dollars (170.18 million U.S. dollars), assuming no further deterioration of trading conditions.