David Jones (DJS) is Australia’s second largest department store retailer and fifth largest retailing company overall.
DJS mainly sells upmarket brands of clothing, accessories and homewares, and is listed as a consumer discretionary stock in the Australian share market.
The group recently posted a 9.1% rise in FY10 net profit to $170.8 million, with the result largely in line with analyst estimates, and the group’s previous guidance.
Revenue increased 3.4% despite tough trading conditions, while EBIT margin rose 70 basis points to 9.9%, indicating revenue growth didn’t come at the expense of relatively higher operating costs.
The result was helped by the refurbishment of DJS’ high value stores and the successful launch of the company’s American Express card.
DJS reiterated FY11 guidance of 5% – 10% net profit growth, however the upper end of this guidance was contingent on the economic recovery being in full swing.
DJS declared a final dividend of 18 cents, which was up from last year’s 17 cents. DJS was one of the weaker performers in the ASX 200 on the day of the announcement, with its share price falling 1.9%.