Retail outlook remains difficult, challenging – DJs

20 Aug '11

2 min read

Following its Sales and Profit after Tax Guidance (PAT) for the second half of the 2011 financial year (2H11) on 13 July 2011 David Jones Limited (DJS) announced its 4Q11 Sales results
for the period 1 May 2011 to 30 July 2011.

The Company reported 4Q11 Total Sales of $462.1 million a decline of 10% on a Like-for-Like (LFL) Calendar Adjusted Weeks basis and a decline of 10.3% on a Total Sales Calendar
Adjusted Weeks basis (4Q10: $515.3 million) (13 weeks vs. 13 weeks). On a Statutory Basis the decline in 4Q11 was 15.9% ($462.1 million in 4Q11 vs $549.6 million in 4Q10) on Total
Sales basis and down 15.7% on an LFL sales basis (13 weeks vs. 14 weeks).

In terms of the full year, Total Sales for FY11 were $1.958 billion a decline of 3.2% on an LFL Calendar Adjusted Weeks basis and down 3.4% on a Total Sales Calendar Adjusted Weeks
Basis (52 weeks vs. 52 weeks). On a Statutory Basis the Total FY11 Sales were down 4.7% and LFL Sales were down 4.5% (52 weeks vs. 53 weeks). Full details of the Company's Sales
performance are set out in Annexure A.

Sales performance trends were similar across all States, categories and demographies although our Home Entertainment & Electrical category was hardest hit by the impact of deflation.

David Jones CEO Paul Zahra said, ”Trading conditions continue to be very challenging in the early days of 1Q12. In the face of this environment we are continuing to manage our Costs
tightly and we are actively working and making progress in managing our Inventory position.

Trading Environment and Outlook
The Company reaffirms its Profit after Tax Guidance for FY11 provided on 13 July 2011 of -0.5% to -2.0%.

At the time that this guidance was provided the Company also provided 1H12 PAT Guidance of -15% to -20%. Whilst this guidance was predicated on negative Sales growth in 1H12 it was
based on the assumption that there would be an improvement on the 10.3% decline in sales experienced in 4Q11. It is still early days, however with the turmoil in the market place and the continuing decline in consumer confidence, to date 1Q12 has shown no improvement from trading in 4Q11.

Mr Zahra said, “We are facing an extremely difficult trading environment. Having said that we have a strong business model and a clear business strategy, we have a strong balance sheet,
good cashflows, the best national and international brand portfolio in Australia.”

David Jones Limited

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