SYDNEY:Department store David Jones has reported a first half profit result of $91.6 million, up by 2.4 per cent on the previous corresponding period.
The business recorded a net profit result of $88.98 million for the six months ended January 24, 2008.
Sales at the retailer fell 6.4 per cent to $1.06 billion in the half, with group earnings before interest and tax (EBIT) down two per cent to $134.1 million.
CEO Mark McInnes said while the current financial circumstances were worse than predicted, the company was well prepared for a downturn.
"In comparison to our peer group of department stores in the US, UK and Australia, David Jones is an exceptionally strong position having the highest EBIT margin and lowest debt levels."
Tight stock management continues to be an imperative for the department store with inventory levels down 12.9 per cent compared to last year. It was reported department stores including David Jones had cancelled second summer orders and reigned in its autumn/winter 2009 spend.
The company reaffirmed its like-for-like sales guidance of -3 per cent to -5 per cent in first half 2010 and flat sales in the second half.