Clothing retailer David Jones Q1 FY'14 revenues up 2.1%

Highlights:

- 1Q14 Total Sales up 2.1% (1Q14: $424.2 million vs. 1Q13: $415.6 million)

- 1Q14 Like for Like (LFL) Sales down 0.3% (1Q14: $414.2 million vs. 1Q13: $415.6 million)

- 1Q14 LFL Sales were up 0.6% excluding the disruption impact of the Canberra Centre store refurbishment

- Well prepared to capitalise on the all-important Christmas & Clearance trading periods with many new initiatives including new merchandise partnerships with iconic UK brands Harrods and Liberty

On a Like-for Like (LFL) basis Sales Revenue was down 0.3%, however, excluding the significant disruption impact of the Canberra Centre store refurbishment, LFL Sales for the quarter were up 0.6%.

David Jones CEO & Managing Director Paul Zahra said, “Whilst it is still early days and we have to trade through the important second quarter, it is pleasing to see the Company return to positive sales growth this quarter. Our Fashion and Beauty categories continued to deliver sales growth whilst our Electronics category remained challenging.

“On 6 November 2013 we will anniversarise the launch of our new webstore and I am pleased to report that our online sales increased by over 1,000% in 1Q14 and that this business made a positive profit contribution (pre depreciation) in its first full year of trading.

“On 1 October 2013 our Electronics business was successfully transferred to Dick Smith in accordance with our Retail Brand Management Agreement (RBMA). We are working towards having the products in this category available on our webstore in time for Christmas trading,” Mr Zahra said.

On a State-by-State basis, New South Wales and Victoria (including the new Highpoint and Malvern Central stores) were the Company’s strongest performing States. The ACT delivered the weakest sales performance due to the disruption resulting from the Canberra Centre store refurbishment.

Transactions and basket size were both up on a Total Sales basis for the quarter and on an LFL basis excluding the Canberra Centre store.

Mr Zahra said, “During the quarter we made good progress in the continued implementation of our Future Strategic Direction Plan. We launched a new Gucci installation in our Elizabeth Street (NSW) store which has not only generated strong foot traffic but also enabled us to continue to attract new target customers including tourists, which complements our UnionPay initiative. This is one of only five department store Gucci installations globally.”

David Jones