egolinews.com

David Jones Limited (DJS) reported a post-tax profit for the six months to 31 January 2009 of $100.5 million, up 10.2% from the previous corresponding figure. Just one year out from the GFC the department store said the result was the highest first half profit since the company listed on the ASX 15 years ago.

Looking ahead, CEO Mark McInnes said the company was expecting 5% - 10% PAT growth guidance for 2H10 and FY10, although the company remains cautious about cycling the Government Stimulus in 4Q10.

“In addition, we reaffirm our PAT guidance for FY11 of 5% - 10% PAT growth. 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.

Turning to the previous six months, Mr McInnes said the result came despite heavy discounting in the Christmas quarter last year.

“Despite a very competitive environment in 1H10, with heavy promotional activity by retailers, we are pleased to report that our GP Margin hit an all-time high of 40.0% and our EBIT Margin was 13.5%, up 90 bp when compared to 1H09,” Mr McInnes said.

Mr McInnes said that cost control measures had also contributed to the strong bottom line result.

”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 department store said total revenue climbed 2.3% to $1.086 billion.

The board declared an interim dividend of 12c per share, a record first half dividend for the company.

”The increase in David Jones’ 1H10 interim dividend reflects the strength of the Company’s Balance Sheet, its strong Cashflows, low debt levels, as well as its ability to fully fund its future Capex program,” the company concluded.

At the close Tuesday, David Jones shares were trading at $5.07.

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