David Jones Limited (DJS) reported sales revenue of $453.3 million for the third quarter of the 2008 financial year, representing total sales growth of 3.8% compared to last year’s corresponding result and like-for-like sales growth of 2.3%.
The company said that it had anticipated the recent slowdown in consumer spending and started to plan for it more than 18 months ago.
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CEO Mark McInnes said the business was in good shape and well prepared for the expected continuing environment of softer consumer demand.
“As stated in our company’s FY09-FY12 strategic plan, we have utilised the strong economic climate over the past 18 months to put in place measures to ensure our inventory levels and costs have been adjusted to reflect the economic conditions we are currently experiencing,” he said.
“We have also benefited from our new store openings in Burwood and Chermside and from our refurbishment program in QueensPlaza, all of which have helped bolster sales in a subdued economic climate.”
Yesterday, David Jones said it was looking open a 14,000 square metre store on Queensland’s Sunshine Coast.
Mr McInnes said the company’s womenswear, menswear, cosmetics, footwear and accessories continued to trade well.
“Sales in big-ticket categories such as electricals, furniture and homewares were the hardest hit, as is expected in times of a downturn,” he added.
“All States showed a softening in sales growth with our best performing states being Queensland and Victoria, which are states where we are taking market share.”
Mr McInnes concluded by reaffirming the company’s guidance of 8% to 13% underlying profit after tax growth in second half of FY08.
David Jones shares have slipped around 34% so far in 2008 investor worries grew about falling consumer sentiment and the softening of demand that Mr McInnes addressed.
At 1005 AEST, David Jones shares were up 1c at $3.61.
