The company operates a chain of over 35 retail stores and primarily sells upmarket brands of clothing, accessories and homewares and David Jones-branded merchandise.
On 23 March, DJS reported a 5.2% increase in 1H11 net profit to $105.7 million, coming in at the lower end of its previous guidance of 5% – 10% profit growth.
Operating earnings increased 4.2% on-year to $125.6 million. This came on the back of mostly flat sales growth.
Along with other retailers, DJS was one of the shares to sell from September last year as consumers tightened their belts amid rising interest rates.
During the half DJS contended with weak consumer sentiment and the recent wet weather events. Recent trading conditions were also being impacted by the Japanese tsunami and unrest in Libya.
DJS reaffirmed a 5% – 10% profit growth forecast for the second half, but noted that growth would likely be at the lower end of guidance if there is a continuation of weak consumer spending.
DJS declared an interim dividend of 13 cents per share.