Home / Knowledge / News / Apparel/Garments / Profits fall at David Jones Limited
Profits fall at David Jones Limited
12
May '11
David Jones Limited (DJS) reported Total Sales Revenue of $411.7 million for the third quarter of the 2011 financial year (3Q11) being the period 30 January 2011 to 30 April 2011.

This represents Total Sales revenue growth on a statutory weeks basis compared to 3Q10
($417.4 million) of -1.4%. On a Like-for-Like (LFL)** statutory weeks basis Sales were down 1.3% on 3Q10.

The FY11 reporting week started one week later than FY10, which was a 53-week year.

Comparing the sales for 3Q11 to the same calendar weeks in 3Q10 (i.e. 31 January 2010 to 1 May 2010) Total Sales decreased by 3.2% and on an LFL basis sales declined by 3.1%. David Jones CEO Mr Paul Zahra said, “Trading conditions were difficult throughout the quarter however in April we experienced an improvement in retail conditions due to a later Easter and colder weather.

“There continued to be aggressive discounting by retailers throughout the quarter as they tried to address conservative consumer sentiment. Fortunately we have a strong business model and an experienced management team and we managed the key components of our business (such as inventory and costs) very tightly,” Mr Zahra said. The better performing categories in 3Q11 were Contemporary Womenswear, Accessories, Menswear and Childrenswear. There was no discernable trend on a state-by-state basis, with all States reflecting the impact of cautious consumer sentiment.

The Company's newly redeveloped Bourke Street Mall (Vic) store delivered a good sales result and has established David Jones on an equal footing in its competitor's home market. The sales benefit from Bourke Street Mall was largely offset by the planned disruption at the Company's Warringah Mall (NSW) and Chadstone (Vic) stores as a result of the refurbishment currently being undertaken in these stores.

The Company's recently opened Claremont Quarter store has also performed well since opening on 16 February 2011. The Company closed two of its grid 4 stores, Toombul (Qld) and Newcastle (NSW) on 29 January 2011 and is transitioning the EBIT contribution of those stores to its nearby Chermside (Qld) and newly refurbished Kotara (NSW) stores respectively. Importantly, the Sales lost as a result of these two store closures have largely been offset by the new Claremont Quarter store.

Mr Zahra said, “The launch of the new Westfield Sydney Centre has helped drive foot traffic into our Sydney CBD stores which we expect will gain further momentum as retail conditions improve.”

Trading Environment and Outlook

Mr Zahra said, “We are fortunate that despite the challenging retail environment experienced in 3Q11 David Jones has:

• a resilient business model;
• an experienced management team;
• a distinctive competitive positioning;
• an excellent performance track record; and
• a strong Balance Sheet.

“This provides a solid foundation from which to trade through the current challenging macro economic environment.


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Paolo Ocleppo
Sandvik Hyperion

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search