DJ's storms into winter

NATIONAL: David Jones is predicting a hot winter trading season led by fashion sales.

Speaking at the company's upwardly revised profit guidance for the first half of financial year 2008, David Jones group general manager apparel, cosmetics, accessories and footwear Collette Garnsey said the department store anticipated buoyant sales of branded clothing, accessories and footwear for the upcoming winter period.

"I think the winter season bodes very well for our fashion offering. In terms of what will be strong sellers, accessories will do very well, especially as we have brands like Mimco and Oroton on an exclusive department store basis."

With leading Australian and international labels - including Sass & Bide, Zimmermann, Lisa Ho, Easton Pearson, Tommy Hilfiger, Lacoste and Polo Jeans - bolstering the store's branded goods strategy, DJ's fashion shoppers would be well served, she said.

"As well as high-end designer labels, we're looking forward to a very attractive offering from brands like Witchery and Saba. I think we're going to see a very strong season for dresses and coats; particularly trench coats updated into a smock style. The emergence of patent leather as a key trend will also see high demand for patent leather shoes and accessories and we're also looking forward to a marked return to tailoring this winter."

During 1H08 (first half of financial year 2008) Profit after Tax (PAT) guidance increased to $87.5 to $89 million - representing 23 to 25 per cent underlying growth on 1H07, David Jones CEO Mark McInnes confirmed.

Sales revenue for the second quarter of 2008 (2Q08) - from October 28 2007 to January 26 2008 - was $664.0 million, compared to $607.3 million in 2Q07, equating to 9.3 per cent total sales growth.

"We are delighted with our strong sales performance in 2Q08, in particular throughout the critical Christmas and clearance trading periods. Our increased PAT guidance reflects our strong sales performance throughout this period, particularly in the apparel and gift-giving categories," McInnes said.

By Belinda Smart