David Jones Limited has announced a 7.3 per cent increase in sales revenue for the fourth quarter (4Q) 2010 from $512.3 million in 4Q09 to $549.6 million in 4Q10.
However, 4Q10 was a 14-week quarter compared to a 13-week quarter in 4Q09. On a like-for-like (LFL) basis, utilising a 13-week period for both 4Q10 and 4Q09, sales growth was 1.7 per cent.
David Jones CEO Paul Zahra said he was pleased to have positive LFL sales growth in every quarter of FY10.
“This trend suggests we have traded through the worst of the global financial crisis. This is particularly encouraging given the unseasonably warm weather in May 2010 and the cycling of the May 2009 Federal Government stimulus package.
“The upward trend in sales in June and July more than offset the challenges faced in May, and provides encouraging support for the view that the worst is over and that trading in the first half (1H) of 2011 is looking more positive.
“Access Economics is forecasting that consumer confidence will continue to improve in the lead up to Christmas. Whilst this is positive news for us we continue to remain cautious about the speed at which consumer confidence returns and as such we have based our internal budgets on conservative sales forecasts.
“Having said that, we are delighted with the customer response to our new Bourke Street Mall flagship stores which we officially unveiled on Friday 13 August 2010,” he said.
Throughout the fourth quarter the company’s trading performance by category was pleasing, said Zahra. Sales growth was evident in women’s and men’s fashion, footwear, accessories and in the key areas of the homewares category, particularly components of the Electronics offer.
From a geographic perspective, all states traded in line with expectations, with strongest growth experienced in NSW and Victoria.