NATIONAL: David Jones' sales revenue has taken a hit for the first quarter of fiscal 2009, falling from $471.9 million in 2008 to $442.3 million. Executives said the 6.8 per cent fall was in line with expectations and the store was prepared for a 7.5 per cent fall in second quarter like-for-like sales.
If conditions continued to deteriorate and the company traded below its budgeted level of 7.5 per cent, then it would also reconsider its fiscal 2009 profit after-tax guidance.
Despite this, CEO Mark McInnes said the department store was well prepared for what would be a difficult year in retail. He said inventory had been tightly managed and a cost efficiency program was on track to deliver the savings required to trade in the new environment.
"Throughout the up-cycle in 2006 and 2007 we ensured we prepared for the downturn that was expected in late fiscal 2008 and fiscal 2009. As such, our trading in first quarter 2009 was in line with our expectations and we were extremely well prepared for this environment."