Upmarket retailer, David Jones (DJS) today delivered a satisfying half year profit of $89 million, pushing the shares up by 4.8% to $3.71.
David Jones reported underlying profit after tax of $89 million for the first half of the 2008 compared to $71.1 million the previous financial year, an increase of 25.2%. First half sales rose 9.5% to $1.1345 billion.
“A key contributor to our company’s 1st half profit result was the strong performance of our core department store business which reported a 26.9% increase in EBIT to $118.4 million in first half,” chief executive Mark McInnes said.
Its financial service business also delivered a good result; reporting a 6% increase in EBIT to $18.4 million compared to $17.3 million the previous corresponding period.
This delivered an increase in underlying earnings before interest and tax (EBIT) of 23.7% to $136.8 million on the previous corresponding half.
David Jones said it is well positioned to address any economic slowdown.
“By utilising the strong economic climate over the past 18 months to put in place measures to ensure it is well prepared.
The company also reaffirmed its profit guidance for the second half.
“We have taken a hard line Inventory and Cost management in our business and we reaffirm our guidance of 8% – 13% underlying PAT growth and dividend growth in 2H08,” McInnes said.
“We have a proven business model, a strong cash position, a productive balance sheet and strong dividend growth,” McInnes said.
“We are well positioned to continue our track record since 2003 of delivering year-on-year growth in shareholder returns and are confident of our performance in second half 2008,” he added.
