Sluggish growth for high end retailer, with sales up just 0.3% in1Q 13
David Jones has just announced its results for first quarter fiscal 2013, reporting sales up 0.3% to $415.6 million, compared to $414.3 m the prior period.
On a Like-for Like basis sales also grew just 0.3%, as there were no store openings or closures during the trading period 29 July- 27 October 2012.
“Whilst it is still early days, it is pleasing to see the Company return to positive sales growth following seven quarters of declining sales,” David Jones CEO Mr Paul Zahra said.
He also said there was “a continued improvement” in sales tracking quarter on quarter in the past 12 months.
DJ strategy to improve the profitability of sales generated by the business by reducing the length of discount events and focusing on “full margin, new season stock as well as phasing out low productivity categories and expanding high margin categories.”
Recently it slashed the duration of Half Yearly Clearance in June and the October event by two weeks.
The retailer also today pledged to focus on on the “all-important” Christmas & Clearance trading period.
Womenswear, Menswear, Beauty, Accessories and Shoes all delivered “positive” sales growth in the quarter, while Home and Electricals continued to be “challenging”, Mr Zahra said.
“Trading in the first couple of weeks of the second quarter is tracking broadly in line with 1Q13,” Zahra added.
“I have just completed a nationwide store review and am pleased to report that we are well prepared across our stores and our online and mobile business channels, for the all important Christmas and subsequent clearance periods.”
Western Australia, NSW and Victoria all showed delivered positive sales growth, while Queensland was adversely impacted in the quarter by the Toowong Village store refurbishment.
David Jones who hijacked the Click Frenzy web sale by having a 24 hours Christmas Frenzy sale of its own yesterday, although its site suffered web difficulties following huge consumer demand.
The frenzy sale was a promo for its launched its new webstore, launched earlier this month.
DS shares slumped -3.5% to $2.48 today.