David Jones’ profits on track

With 36 stores located in major cities across Australia, department retailer David Jones has reaffirmed its profit guidance for FY2010/11.

Following the release of its financial results, David Jones presented to an investor roadshow indicating that it is on track in achieving its expectations for FY11 after just seven weeks into the new fiscal year.

The company reiterated that it expects to achieve five to 10 per cent growth in profit after tax (PAT) in FY11. But admitted that the company “needs to be in full swing” for the whole year.

David Jones also believes that the refurbishment of four of its flagship stores, which is the first year in over a decade that all CBD stores across Australia are refurbished and uninterrupted, will help deliver growth in FY11.

Meanwhile, the attractive Australian department store industry structure will help the company “maintain a distinctive competitive positioning” and “leverage up cycle in [the] strong Australian economy”.