One of Australia's oldest retailers, David Jones (DJS) has posted encouraging sales results for the second quarter of financial year 2008, and projected an increased first half profit guidance.
The Christmas period proved a bonanza for the retailer, with sales revenue for the 13 weeks leading to 26 January (second quarter) totalling $664 million versus $607.3 million in the previous corresponding quarter.
The increase equates to 9.3% total sales growth and 7.6% sales growth on a like-for-like basis.
"We are delighted with our strong Sales performance in 2Q08, in particular throughout the critical Christmas and clearance trading period," chief executive officer Mark McInnes said.
As a result of the stronger than expected sales growth, David Jones also increased its first-half profit after tax (PAT) guidance to between $87.5 million and $89 million.
This represents underlying growth of between 23% and 25% on previous corresponding period, and an increase from previous guidance of between 8% – 13%.
"Our trading performance in January and the first 2 weeks of February was strong notwithstanding the equity market fluctuations over this period," McInnes said.
"Sales in all categories exceeded our expectations. Stand-out trading performances were delivered by our womenswear, menswear, accessories, footwear and cosmetics categories. Our homewares and entertainment categories also performed well.
In regard to the outlook for second half of fiscal 2008, McInnes reaffirmed the guidance they have provided to the market of 8% – 13% underlying PAT growth.
The guidance figures prompted the shares in DJS to end a four day losing streak, rising as much as 7.6% to $4.49 during intraday trading.
Shares fell back to $4 following the release of RBA inflation warnings, which pushed the overall market down by more than 2%.
The market capitalisation of David Jones is about $2.1 billion.
David Jones will release its interim result figures on 26 March 2008.
