Australia's David Jones Q2 sales rise 9.3 pct

MELBOURNE, Feb 11 (Reuters) - Upmarket Australian department store chain David Jones Ltd (DJS.AX: Quote, Profile, Research) posted a 9.3 percent increase in second-quarter sales, lifted by a bumper Christmas season, and raised its first-half profit growth forecast.

David Jones said total sales increased to A$664 million ($598 million) in its second quarter, up from A$607.3 million a year earlier.

That compared with market expectations of A$651 million, according to a Reuters survey of three analysts.

It sees first-half profit growth at between 23-25 percent, up from a previous forecast of 8-13 percent.

The retailer, with 36 stores, has been helped by a buoyant economy and a shift downmarket at its larger rival, Myer, owned by private equity firm TPG [TPG.UL]. It reaffirmed its forecast for net profit growth of 8-13 percent in fiscal 2008.

David Jones shares have fallen 23 percent this year on worries about a slowdown in consumer spending, against 10 percent for the broader market . ($1=A$1.11) (Reporting by Victoria Thieberger)