DJ's armed and ready for slowdown

NATIONAL: Australian department store David Jones is optimistic about trading through the expected lull in consumer spending, following a record first half year profit result.

David Jones Limited today announced an underlying profit after tax of $89 million for the half year ended January 26 2008. This represented an increase of 25.2 per cent on the same period last year, when it recorded a profit of $71.1 million.

CEO Mark McInnes attributed the company's strong performance to its core department store business, which reported a 26.9 per cent increase in earnings before interest and tax.

"Our business is in good shape and our future is bright," he said. "We have ultilised the strong economic climate over the past 18 months to put in place measures to ensure we are well prepared to address the expected slowdown in consumer spending in [the second half of 2008] and beyond."

The company announced it was on track to open its Doncaster store in Melbourne by October 2008, along with refurbishments of three key sites across Sydney and the Gold Coast by Christmas. McInnes said David Jones was in a strong position to encourage further growth, boasting a $350 million cash facility that had only been drawn to the extent of $170 million.

"We are well positioned to continue our track record since 2003 of delivering year-on-year growth in shareholder returns and are confident of our [future] performance."