Home / Knowledge / News / Apparel/Garments / David Jones' Q3 FY'13 sales fall 2.2%
David Jones' Q3 FY'13 sales fall 2.2%
29
May '13
David Jones Limited (DJS) reported Total Sales Revenue of $391.1 million for the third quarter of the 2013 financial year being the period 27 January 2013 to 27 April 2013 (3Q13).

Highlights:
- 3Q13 Total Sales down 2.2% (3Q13: $391.1 million vs. 3Q12: $399.8 million).
- 3Q13 LFL Sales down 3.4% (3Q13: $386.2 million vs. 3Q12: $399.8million).
- The Company reduced its discounting program throughout the quarter.
- Progress being made in exiting and consolidating low productivity categories.
- Investment in customer service has resulted in an improvement in the Company’s service metrics.
- Costs continue to be tightly managed.

This represents a Total Sales decline of 2.2% on 3Q12 (3Q12: $399.8 million).On a Like-for Like (LFL) basis Sales were down 3.4%. The Company's LFL Sales this quarter include the Canberra Centre (ACT) store which was disrupted due to refurbishment and excludes the new Highpoint (Vic) store which opened in mid March 2013.

David Jones CEO and Managing Director Mr Paul Zahra said, “In the current environment of cautious consumer sentiment we made a deliberate decision to continue to focus on the areas of our business that we can control namely; GP Margins, Inventory and Costs.

“The unseasonably warm start to winter impacted our business in particular Womenswear.

“Our high margin Beauty, Menswear and Childrenswear categories delivered growth for the quarter, however our overall sales performance was once again adversely impacted by our Home categories, in particular Electronics which continues to be subject to industry and price pressures.

“Despite the warm start to the season our Winter Inventory was well managed and is at lower levels than the previous corresponding period.

“We continued our strategy of reducing discounting throughout 3Q13 notwithstanding aggressive promotional activity in the market. Most notably our mid-season sale (Invitation Event) was reduced by one full week and we removed our $10 million Floor Stock Clearance event.

“Our view is that the ongoing increase in the depth and breadth of discounting that we are seeing in the market is not sustainable. This is a view shared by many brands and as a result we have seen an increase in the number of brands looking to convert their distribution arrangements to department store exclusive agreements with David Jones. Recent additions to our portfolio that fall into this category include Givenchy, Pucci, Joseph, Finders Keepers, Gumboots and Sunseeker.

Having said this, in the short term we expect to see heavy discounting as other retailers attempt to address excess winter inventory issues. Whilst we do not propose to match this expected discounting activity our key June Clearance will need to be competitive and we will need to maintain our marketing share of voice,” Mr Zahra said.

David Jones

Must ReadView All

Prime Minister Theresa May speaking on the UK government's negotiating objectives for exiting the EU. Courtesy: UK government

Textiles | On 18th Jan 2017

UK to pursue trade agreements with other countries

The United Kingdom will pursue free trade agreements with the EU and...

Courtesy: Alibaba Group

Apparel/Garments | On 18th Jan 2017

Alibaba forges global alliance to fight counterfeiting

Jack Ma led Alibaba Group has forged an alliance with various global...

Information Technology | On 18th Jan 2017

eBIZ 4.0 to digitise European fashion supply chain

eBIZ 4.0 is a new step of eBIZ, the public-private initiative that...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search