Shares in Just Group (JST) rose by as much as 6% after the fashion retailer delivered an increase of 3.1% in first half profit and a sound full year outlook.
JST securities closed up 14 cents, or 4% at $3.61.
Profit after tax for the 26 weeks ended 26 January 2008 was $40.1 million compared to $39.73 the previous corresponding period.
“The Just Group has excellent financial fundamentals, with strong cash flow and low debt, powerful brands and an outstanding retail machine that is capable of rapidly adjusting to changes in the business environment,” managing director Jason Murray said.
Earnings before interest, tax and amortisation increased by 10% to $64.27 million.
Earnings per share increased by 19.6% to 20.36 cents.
“We recognise that increased petrol costs, increased interest rates and fears about the global economy have led to a fall in investor and consumer confidence. We have, however, not seen any material impact on our businesses, and are well prepared to meet any downturn in economic conditions between now and at the end of July,” Murray said.
The group, which has a portfolio of retail brands such as Just Jeans, Jay Jays, Dotti, Portmans, Jacqui E, Peter Alexander and Smiggle, said all the brands made contributions in the half.
In addition, its store network expanded to 875 stores across Australia and New Zealand from 810.
In its outlook the group remains positive as the first five weeks of trading for the second half have been solid.
“We remain confident that we will deliver a FY08 full year earnings result consistent with the 32c to 35 c earnings per share range expected by equity analysts, and reiterate our strategic goal of delivering earnings per share in FY2020 of at least 38.4 cents,” the company said.
“Earnings per share will continue to benefit in FY08 from the acquisition of Smiggle, last year’s share buy-back, the higher Australian dollar and the recovery in trading, from the prior year, of the Dotti and Jacqui E businesses.”
Directors declared interim dividend of 10.5 cents per share fully franked compared with an interim dividend of 9.5 cents per share fully franked for the previous year, up 10.5%.
