David Jones has reported total sales for the first half of 2010/11 dropped just 0.1 per cent on the corresponding period of the prior year.
The national department store revealed total and like-for-like sales for the six months to January 29, 2011 amounted to $1.08 billion.
Sales in the second quarter totalled $617.6 million, up from $466.6 million in the first quarter.
David Jones CEO Paul Zahra said it was a challenging second quarter on account of wet and cool weather, a decline in consumer sentiment, significant discounting prior to Christmas and the impact of the Queensland floods, which closed six David Jones stores.
“Consumer shopping behaviour continued to be patchy throughout second quarter 2010/11 and we have seen no material signs that this is changing. Sales on a state-by-state basis (excluding Queensland) were consistent, with no discernible trend emerging,” Zahra said.
“Despite a very competitive retail environment in second quarter 2010/11 with heavy promotional activity by retailers, we have managed our cost position well and I am pleased to report that we have also effectively managed our gross profit margin and inventory.”
Zahra reaffirmed David Jones' profit after tax growth guidance of between five and 10 per cent for the full financial year, adding “we expect it will be at the lower end of this range.”
Apparel brands in the David Jones stable include Arthur Galan, Lisa Ho, Jac + Jack, Thurley and Camilla and Marc.