David Jones fourth quarter sales up 5.4%

By James Wells

SYDNEY: David Jones has reported sales revenue of $454.6 million for the fourth quarter of the 2006 from 30 April 2006 to 29 July 2006 – a 5.4 per cent increase on the same period a year earlier.

Sales for the second half of the 2006 financial year grew 4.4 per cent to $857.3 million from $821.4 million in the second half of the 2005 financial year. Sales for the full year grew 1.2 per cent on the previous year – from 1,819.9 million in 2006 compared to 1,799.1 million in 2005.

“We were delighted with our fourth quarter 2006 sales performance. Our sales this quarter were stronger than expected,” said David Jones chief executive, Mark McInnes

“Our sales this quarter was the result of a strong performance across all categories including our women’s, men’s and children’s apparel, footwear, accessories, cosmetics, homewares and home entertainment. We also performed well across all states with Western Australia being the standout performer,” McInnes said.

Looking forward, the company reiterates the comments made at the time of its 27 July announcement, that the broader retail cycle appears to be trending upwards in line with the view expressed by independent economic forecasters such as Access Economics.

“Whilst there are a mixture of positive factors such as tax cuts and negative factors such as interest rates and petrol prices impacting the economic outlook, independent forecasters in general expect favourable retail conditions in FY07 (the 2007 financial year) and FY08 (the 2008 financial year).”

Last month the Narta member also announced it would be opening three new stores.

David Jones will take over the lease of the Myer store at Westfield Burwood in Sydney and open a re-branded store in April 2007.

David Jones will also sign a new lease with Westfield for a new retail site at Chermside in Brisbane to open in August 2007. Westfield Chermside, once it completes its $180 million expansion in October this year, will become the largest shopping centre in Brisbane.

The third store located at Westfield Doncaster in Melbourne, which will open in late 2008, has been a site earmarked by David Jones management for some time.

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