MELBOURNE: David Jones has delivered good news for shareholders following months of media turmoil regarding its former chief executive officer Mark McInnes.
The department store retailer posted a record profit after tax result of $170.8 million for the financial year to July 31, 2010. This was up 9.1 per cent on the previous figure of $156.5 million.
Total sales were reported as up by 3.4 per cent to $2,053.1 million, compared to $1,985.5 million the previous financial year. Total EBIT was $249.2 million, up from $225.7 million the prior year.
The company said it is on track to deliver profit after tax growth of five to 10 per cent over the next two years.
Chief executive officer Paul Zahara said over the next year the business should reap the benefits of recent renovations to four of its key stores, due to increased selling space on the floor. These stores include the Melbourne city flagship, Claremont in WA, Kotara in NSW and Wollongong in NSW.
Two planned stores openings, in Pacific Fair and Macquarie, have been pushed back until the financial year of 2013 or 2014. Zahara said development delays had occurred due to the global financial crisis.
In replace it has decided to undertake major strategic upgrades of its Chadstone store in Melbourne and its Warringah Mall store in Sydney.
“These upgrades involve a total reconfiguration of our stores with a focus on and reallocation of space to high margin categories, and more space allocated to high value, high growth categories. The upgrades also involve an increase in selling space.”
It is expected these will be completed in the first half of the 2012 financial year.
Also planned are 1000 new branded installations for labels such as Nine West, Quiksilver, Roxy, Collette by Collette Dinnigan and Thomas Pink.
Recently the department store has been involved in legal proceedings concerning sexual harassment allegations by former company publicist Kristy Fraser-Kirk against McInnes.
DAVID JONES: Better news for shareholders.
