Not much to say about this DJS result... nothing spectacular but increased EPS good to see. Forward comments interesting:
DJs to be hit by soft sales, refurbishments March 19, 2003 Upmarket retailer, David Jones (DJS) today said it expects a “softening” of consumer spending in calendar 2003 and that a number of one-off refurbishments will reduce second half sales. This came after it announced a net profit of $27.4 million for the first half, compared to $27 million in the previous corresponding period.
“The continuing disruption experienced at the Bondi store during refurbishment and the temporary closure of the Market Street foodhall will reduce our sales by more than 2%, which is likely to lead to a flat like-for-like sales result in the second half, but will drive positive results in the first half of the next financial year,” David Jones said in a statement to the ASX.
“Despite this sales environment for the current half, we will deliver on the full-year profit guidance of a 15-20% increase in NPAT (pre significant items and preference share dividends) due to our management of margins and renewed focus on cost efficiencies.”
The company also cut its interim dividend to 3c from 4c as a result of a number of capital management decisions that were taken in May last year “in order to increase financial flexibility and strengthen the balance sheet.”
Group earnings before interest and tax (EBIT) of $48.3 million was up 12.5% on the previous half-year. As previously announced group sales for the half-year were up 5.1% to $924 million, with a like-for-like increase of 4.4%.
CEO Mark Mclnnes said: “We’ve delivered a good trading result, despite a highly competitive environment, however there is much progress to be made on the group’s cost base.
“The management of the group’s cost base is a critical focus of the 3 Year Strategic Review currently underway.”
The results of the review are expected to be known in late May.
The company said its troubled Foodchain operations is trading in line with exceptions.
The outcomes from a detailed review of the Foodchain business will be released as part of the Strategic Review.
In early trade David Jones was down 1c to $1.07
DJS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
