SYDNEY: Department store David Jones has attributed a lull in sales growth to the national slowdown in consumer spending.
The Sydney-headquartered company today announced sales revenue of $453.3 million for the third quarter of the 2008 financial year (3Q08), just a 3.8 per cent growth to the same period last year.
CEO Mark McInnes said although the business was in good shape, it was prepared for the expected downturn in consumer demand. McInnes said the current economic climate was expected to continue for the remainder of the 2008 and 2009 financial year.
"Our 3Q08 sales performance reflects the slowdown in consumer spending that we were anticipating and had started to plan for more than 18 months ago. We have utilised the strong economic climate over the past 18 months to put in place measures to ensure our inventory levels and costs have been adjusted to reflect the economic conditions we are currently experiencing."
McInnes said all states had indicated a slowdown in sales growth, with Queensland and Victoria being two of the better performing areas.
"There has been a significant deterioration in consumer confidence as interest rates have increased and the financial services sector has come under increasing pressure," he said. "Our guidance for 2H08 and FY09 has factored this in."
The department store has reaffirmed its guidance of an 8 to 13 per cent underlying PAT growth in 2H08.
David Jones stocks a wide range of Australian designer fashion including sass & bide, George Gross, Harry Who, Scanlan & Theodore and Ginger & Smart.