David Jones has announced that like-for-like sales for the second quarter of 2010 (2Q10) increased by 3.1 per cent compared to the same period last year, while like-for-like sales for the first half of 2010 (1H10) were up 2.2 per cent on the same period in 2009.
David Jones CEO Mark McInnes said consumer sentiment had improved slightly in the first six months of 2010.
“Despite a very competitive retail environment in 2Q10 with heavy promotional activity by retailers struggling to maintain sales momentum without the help of the December 2008 stimulus package, I am pleased to report that our gross profit margin (GP) and our earnings before interest and tax (EBIT) margin improved compared to this time last year,” he said.
“Our costs and inventory were also tightly managed and as a result we have increased our 1H10 profit after tax guidance to approximately 10 per cent from 0–5 per cent.”
McInnes is cautiously optimistic about the winter trading half.
“The fact that we will be cycling our worst sales trading performance in February and March coupled with the fact that our redeveloped Bourke Street store is expected to deliver positive sales momentum in 2H10 as we cycle the significant refurbishment disruption incurred in 2H09, and our margins, costs and inventory have been excellently managed, gives us confidence that we are well positioned to trade through the remainder of FY10.”
“As a result of all of these factors we have increased our 2H10 profit after tax guidance to 5–10 per cent from 0–5 per cent,” said McInnes.
David Jones Bourke Street store is expected to be completed in 1Q11, Kotara in November 2010 and Claremont is due to open in February 2011.