David Jones lifts profit guidance
February 8, 2010
David Jones Limited (DJS) said strong sales would see its first half and full year profit climb around 10% from the previous corresponding periods, up from a 0% to 5% increase previously flagged. Going into the following year, 2011, the company forecast growth of between 5% and 10%.
Looking ahead, CEO Mark McInnes said the company was cautiously optimistic about trading in the winter half of the year.
”Our caution is based on cycling the 4Q09 Government Stimulus, however that said, we are cycling (in February and March) the worst of the 2009 economic downturn,” Mr McInnes said.
However, Mr McInnes said the redevelopment of its Bourke Street shop and the fact margins, costs and inventory had been well managed would help the bottom line.
"As a result of all of these factors we have increased our 2H10 Profit after Tax (PAT) Guidance to 5% - 10% from 0% - 5%," Mr McInnes said.
In the Christmas trading quarter, the company reported like-for-like sales increased 3.1%, while over the entire half-year trading increased 2.2%.
“We have a strong business model, a loyal customer base and the best national and international brand portfolio in Australia,” Mr McInnes said.
”Our strong balance sheet, low debt levels, unique market position, medium term growth program and strong management team gives us confidence to provide FY11 PAT Guidance of 5% - 10% growth.”
At the open Tuesday, David Jones shares were trading up 7c to $1.52.
Looking ahead, CEO Mark McInnes said the company was cautiously optimistic about trading in the winter half of the year.
”Our caution is based on cycling the 4Q09 Government Stimulus, however that said, we are cycling (in February and March) the worst of the 2009 economic downturn,” Mr McInnes said.
However, Mr McInnes said the redevelopment of its Bourke Street shop and the fact margins, costs and inventory had been well managed would help the bottom line.
"As a result of all of these factors we have increased our 2H10 Profit after Tax (PAT) Guidance to 5% - 10% from 0% - 5%," Mr McInnes said.
In the Christmas trading quarter, the company reported like-for-like sales increased 3.1%, while over the entire half-year trading increased 2.2%.
“We have a strong business model, a loyal customer base and the best national and international brand portfolio in Australia,” Mr McInnes said.
”Our strong balance sheet, low debt levels, unique market position, medium term growth program and strong management team gives us confidence to provide FY11 PAT Guidance of 5% - 10% growth.”
At the open Tuesday, David Jones shares were trading up 7c to $1.52.
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