David Jones raises profit guidance

NATIONAL: David Jones has increased its 2009/10 profit guidance in the wake of strong like-for-like sales in the October to January sales period.

The national department store announced like-for-like sales in the second quarter of 2009/10 were up 3.1 per cent on the second quarter of 2008/09. Total sales for the first half of the current financial year were $1086.8 million, an increase of 2.3 per cent on the previous corresponding period.

David Jones CEO Mark McInnes said the retailer experienced a slow improvement in consumer sentiment in the first half of 2009/10.

“Despite a very competitive retail environment in 2Q10 with heavy promotional activity by retailers struggling to maintain sales momentum without the help of the December 2008 stimulus package, I am pleased to report that our gross profit margin and our earnings before interest and tax margin improved compared to this time last year.”

The first half results have contributed to an increase in profit expectations for the 2009/10 year, said McInnes. David Jones increased its profit after tax guidance for the first half of 2009/10 to an expected 10 per cent growth, and to an expected five to 10 per cent growth for the second half. David Jones previously forecast growth of zero to five per cent for each half.

McInnes said David Jones was “cautiously optimistic” about the winter trading half.

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