Department store David Jones has today announced a dip in sales, despite its apparel sections showing 'positive growth'.
For the second quarter of the 2012 financial year, October 30 to January 28, the retail giant reported a total sales venue of $598.5 million.
This represents a total sales decline of 3.1 per cent, compared to the same period in 2011.
David Jones CEO Paul Zahra said that while the sales performance this quarter reflects the continuing challenging retail environment, there has been improvement in 2Q12 versus 1Q12.
“Trading conditions continue to reflect the uncertainty in the macro-economic environment with conservative consumer shopping continuing and no material signs that this is changing,” Zahra said. “Despite the impact of cooler weather throughout 2Q12, our better performing categories were womenswear, menswear, footwear and accessories, all of which delivered positive growth for the quarter, however this was partly driven by clearing excess inventory.”
Zahra said there was an improvement in December 2011 and January 2012 compared to October 2011 and November 2011, which in turn were better than August and September 2011.
Sales on a state-by-state basis were consistent, except for Queensland which showed signs of improvement.
Zahra said the stores are making good progress in clearing excess inventory and while he is confident that this will be cleared in FY12, as previously flagged this will have an impact on the gross profit margin performance in both 1H12 and 2H12.
Zahra is also hoping that the new 650sqm bridal boutique in the Elizabeth Street store, Sydney, will help to 'carve out a profitable share' of the $1 billion per annum that brides, their partners and families spend each year on dresses, suits, shoes and accessories - according to IBIS World research.