After $712m impairment.
David Jones operating profit for the half ended 24 December 2017 has plummeted 38% to $66 million. Total sales for David Jones fell 3.8% and comparable sales were 3.3% lower than the previous corresponding period, despite a rebound in the last six weeks, with comparable sales up 0.6%.
This follows an assessment of David Jones, resulting in a $712.5 million write-down of the department store’s value due to economic downturn, intense competition and promotional activity, as well as poor and delayed execution of key initiatives, such as private label.
In its financial statement, David Jones parent company, Woolworths Holdings Limited, said, “There has been a slowdown in sales in FY2017 and HI 2018 due to deterioration in the trading environment, both cyclical and structural. Based on a considered view of cash flows, we assume no recovery in the retail sector in the short term resulting in an asset write-down of $712.5 million.”