Scandals and departures fail to impact DJs’ profit announcement

By Keri Algar

SYNDEY, NSW: David Jones has announced a lift in Q4 sales with a 1.7 per cent like-for-like increase on revenue.

The luxury retailer announced the results this morning whilst reaffirming a conservative profit after tax guidance of 8-10 per cent for FY10 and 5-10 percent for FY11.

David Jones CEO Paul Zahra, said he was pleased to report the positive sales growth, but would remain cautious about the rate at which consumer spending would return.

“Access Economics is forecasting that consumer confidence will continue to grow in the lead up to Christmas,” said Zahra.

“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.”

Sales growth was evident in key areas of the homewares category, especially components of the electronics offer, according to a statement released on the Australian Securities Exchange.

Zahra said the Q4 sales results indicated retailers had weathered the storm of the global financial crisis.

“This trend suggests we have traded through the worst of the Global Financial Crisis.”

“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 1H11 trading is looking more positive.”

Rival retailer Myer, last week posted a 0.9 per cent decline in Q4 like-for-like sales. Unlike Zahra’s conservative approach to forecasting revenues, Myer CEO Bernie Brookes, said he was pleased to report the company expected earnings before interest and tax to be ahead of prospectus for the full year ahead.

David Jones is currently being sued for $37 million by former publicist Kristy Fraser-Kirk.

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