NATIONAL: Australian department store David Jones has not followed in the sluggish footsteps of its American counterparts, posting its highest full year profit result and dividend since listing in 1995. The Sydney-headquartered company reported underlying profit after tax of $137.1 million for the year ended 26 July 2008, an increase of 25.1 per cent on the same period last year.
Sales revenue for the year grew by 5.8 per cent to $2.1 billion, a growth of $420 million since 2003 with "essentially" the same store base.
Earnings before interest and tax (EBIT) were $212.9 million, up by 21 per cent on the previous year.
The result followed the announcement of David Jones' strategic plan for the fiscal years 2009 to 2010. As reported by ragtrader.com.au in March, the plan outlined seven key sources of value to ensure profit after tax growth of at least five to 10 per cent per annum over the next four years.
These included opening four to eight "high value" new stores in centres with strong demographics and locations, and the refurbishment of 11 to 14 of its strongest performing stores.
David Jones CEO Mark McInnes said sales for the 2009 financial year were already tracking on budget, despite the tough trading environment.
"We are prepared for three tough quarters at the commencement of [fiscal] 2009. We have worked extensively to ensure that our cost efficiency initiatives and our inventory management are on track to address the expected slow trading environment."
American luxury and value department stores have reported a sluggish year in retail, with Macy's profit declining from $74 million to $73 million for the second quarter and Sears Holding Group posting a whopping 62 per cent decline in earnings for the same period.