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David Jones' transformation under a new parent company is progressing ahead of expectations.

Woolworths said its new acquisition has "materially outperformed" the department store sector.

David Jones posted double digit sales growth of 10.7 per cent for the second half of the year.

Sales of A$1.885 billion were 6.4 per cent ahead of the same period prior to its acquisition.

Woolworths said this is ahead of both the department store segment and the overall Australian clothing market.

Operating profit of A$161 million was 28.8% higher than in the comparative 11-month prior period.

The news comes as Woolworths continues to push its house of brands into David Jones stores.

Over 300 Country Road, Trenery, Witchery and Mimco merchandise pads have been rolled out across David Jones’ 38 sites.

Studio.W, RE:, JTOne and Distraction have also recently been introduced into a number of locations.

During the year, Woolworths acquired the remaining 12 per cent interest in Country Road Group (CRG), owner of Witchery, Trenery and Mimco.

Woolworths said full ownership was a logical step towards unlocking regional synergy opportunities between David Jones and CRG.

In Australasia, sales grew by 11.5% and by 4.7% in comparable stores, trading well ahead of the Australian market.

Woolworths chief Ian Moir said the outlook is positive.

“This year has been transformational for our Group with the acquisition of David Jones and the full ownership of Country Road Group enabling us to make a step change in the scale of our operations: transforming it into a quality retailer with significant scale across sub-Saharan Africa and Australasia.

“This is a strong set of results, particularly considering the amount of change the Group has undergone due to our new investment in Australia and the tough trading conditions that prevailed in both our major markets.”

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