David Jones Ltd (ASX:DJS) says recovery will need to be in full swing to meet the upper end of its guidance in the current financial year.
The retailer has reaffirmed that it expects an improvement of between 5 to 10 per cent in net profit, with trading in the first seven weeks of fiscal 2011 in line with expectations.
David Jones says the Australian market has been resilient in the global downturn and is set to recover, benefiting from strong growth in China and India.
Adding that consumer confidence in Australia is higher than in the US, and Australian department stores have not experienced the sales decline seen in the USA or UK.
David Jones says its foundations are in place for continued profit growth in fiscal 2013 and beyond.
In the six months to 23 January this year, David Jones posted a $100.46 million profit.
DJS Price at posting:
$4.97 Sentiment: None Disclosure: Held
