Do More With Reuters
Partner Services

Australia's David Jones raises profit guidance

Thu Aug 14, 2008 4:47am IST
 
Email | Print | | Single Page
[-] Text [+]

MELBOURNE, Aug 14 (Reuters) - Australian upmarket department store chain David Jones Ltd (DJS.AX: Quote, Profile, Research) raised its profit forecast on Thursday, predicting 20-25 percent growth in the second half.

The 36-store chain said net profit for the six months to July was set to total A$46-A$48 million ($40-$42 million), up 20-25 percent from a year earlier. David Jones also reported fourth-quarter like-for-like sales growth of 0.8 percent.

"Despite volatile trading in second-half 2008 and the requirement to clear seasonal stock, our gross profit percentage is up approximately 10 basis points on second-half 2007," the firm said in a trading update.

"This means we are well placed to deliver our gross profit margins within our target range of 39.5-40.0 percent throughout fiscal 2009-fiscal 2012."

Australian retailers have been hit by a slowdown in discretionary spending as consumers juggle high interest rates and rising food and petrol prices.

Shares in David Jones, which mainly competes with the larger, private equity-owned Myer chain, have fallen 32 percent this year compared with a 20 percent fall for the broader market . ($1=A$1.14) (Reporting by Victoria Thieberger and Mark bendeich, editing by Mette Fraende)

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Sanjay Sinha
Balancing Act

In India, it is a tough choice between growth, managing inflation and financial stability.  Full Article 

 
Nipun Mehta
Road to Recovery

There needs to be an acceptable balance created between education and healthcare and infrastructure spend, says Nipun Mehta of SG Private Banking.   Full Article 

 
Robot Asimo

Snapshots of Honda Motor's humanoid robot Asimo  Slideshow 

 
Marketing Strategy
Marketing Strategy

Companies are now using direct marketing methods to sell their products.  Full Article 

 
Exit Plans
Exit Plans

Factbox - Stimulus exit plans for Asia-Pacific's big 5 economies  Full Article