iPod helps David Jones earn over $1 billion in half a year

By Sarah Falson

SYDNEY: Narta member David Jones has reported sales growth of 8.9 per cent for the second quarter of the 2007 financial year, and has earned a record $1 billion during the first half due in part to iPod sales.

Entertainment, homewares, womenswear, menswear, accessories, footwear and cosmetics were the best performers, with iPods receiving a special mention for their “outstanding” sales. The company also speculated that “all categories traded well,” that “stores in all states delivered strong sales,” and that the company is “well positioned to leverage the next phase of the long term economic cycle.”

Sales for the half year from June 2006 to January 2007 were up by 7.8 per cent to $1037.6 million, compared with $962.6 million for the same period the year before.

“We are delighted with our strong sales performance in 2Q07, in particular throughout the critical Christmas and clearance trading periods. This is the first time in our company’s history that we have reported more than $1 billion of sales revenue in a six-month trading period,” said David Jones CEO, Mark McInnes.

“Our trading results reflect a general strengthening in consumer sentiment over this period and the fact that our business was well prepared to leverage this. It also reflects strong customer response to David Jones’ differentiated brand offerings in an environment where the competitive dynamics in the department store industry are changing.”

According to McInnes, stores in Western Australia performed the best in terms of growth, closely followed by Victoria and Queensland. New South Wales, Western Australia and the ACT also delivered “strong trading results.”

According to the report, the new store and refurbishment program is looking well – the Burwood NSW store is set to open early in May, while the Chermside Queensland store is on track to open in August, and the QueensPlaza store is confirmed to open in February next year.

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