DJs first-half profit gains 10.2%

David Jones Ltd increased first-half profit 10.2 per cent as the department store chain reaffirmed profit growth guidance of between five and 10 per cent this year and next.

Net profit rose to $100.46 million for the 26 weeks to January 23 from $91.2 million in the prior corresponding period, Sydney-based David Jones said in a statement on Wednesday.

David Jones chief executive Mark McInnes said the company reaffirmed its profit after tax growth forecast of between five per cent and 10 per cent for fiscal 2010 and 2011, as well as for the second half of fiscal 2010.

"We note that to achieve the top end of this guidance the retail recovery will have to be in full swing, something Access Economics does not forecast until 2012," Mr McInnes said in the statement.

The company declared a first half dividend of 12 cents per share fully franked, compared with the 11 cents paid a year earlier.

Gross profit (GP) margin for the first half was 40 per cent, up from 39.5 per cent.

"This represents a 50 basis point improvement and is an excellent result given the heavy promotional activity and discounting by retailers throughout 2Q10," David Jones said.

The GP Margin reflected the store renegotiating its 2,700 supplier contracts, the reallocation of space to high margin categories and the increase in department store exclusive brands, it said.

"Our company has continued its stringent management of costs, making good progress in implementing the 58 Cost Efficiency Initiatives we announced in September 2009," Mr McInnes said.

"These initiatives include putting the company's advertising agency, energy, lift and escalator maintenance, media buying and catalogue printing and delivery contracts out to tender."

The total cost of doing business (CODB) was 28.4 per cent, an improvement of 30 basis points on the prior corresponding period.

• Bookmark this page
• Share this article
  •  
  • facebook
  • slashdot
  • digg
  • Reddit
  • stumbleupon
  • linkedin
  • twitter
• Got more on this story? Email Computerworld
• Follow Computerworld on twitter

• Share
  Share this article

  •  google+
  • facebookfacebook
  • slashdotslashdot
  • diggdigg
  • RedditReddit
  • stumbleuponstumbleupon
  • linkedinlinkedin
  • twittertwitter
• print
• email
• Bookmark