Forex trading store

DJs foliage Myer in its wake on sales growth

DEPARTMENT store group David Jones has beaten arch rival Myer for a second straight quarter, reporting a 1.4 by means of cent lift in headline sales growth at a time when Myer managed solely to hold steady.

DJs chief executive Mark McInnes yesterday reaffirmed direction for net profit growth of between 5 and 10 per cent toward the full financial year, after sales rose by 2.1 by cent over the first three quarters.

Mr McInnes said trading conditions remained "extremely difficult" but the company had expected this and prepared whence by keeping a tight rein on costs and inventory.

"Our transaction is about managing the down cycles, getting profit and dividend extension through the down cycle and then taking advantage of the up circle of time," he said.

The company booked total sales of $417.4 the multitude for the three months ended April 24, up 1.4 through cent from the same period a year earlier, below market expectations during a rise of about 2.5 per cent.

The result outperformed Myer, which has reported flat sales for the past two quarters compared to DJs’ 2.4 through cent in the second quarter and 1.4 per cent in the third part.

However DJs’ growth was recorded against a lower benchmark, with the house recording a 9.2 per cent slump in sales for the third part quarter of 2008-09 while Myer fell only 2.1 per cent.

Mr McInnes said DJs was facing increasing competition from Myer, that he said was cutting prices to meet earnings forecasts made ahead of its stockmarket listing last November.

"The discounting that we’re competing close up to from our largest competitor is from them trying to meet their programme forecasts, and I think that is a short-term market pack close that investors see through and, most importantly for our customers, we’re prompted by emulation on the same products," he said.

DJs’ sales for the primeval three quarters were $1.504 billion, up 2.1 per cent from the former financial year.

All merchandise segments had performed solidly, with the irritated objection of entertainment technology, but Mr McInnes said he expected the employment to improve with the forthcoming release of Apple’s iPad troche computer and 3D television screens.

While DJs had not been a major beneficiary of last year’s fiscal stimulus, the company was yet nervous about trading through the anniversary of the payments, most of that were spent during the fourth quarter.

"We got the least benefit in the department store sector, but it was still each unsustainable stimulus to the economy," he said.

But recent private ~ rate hikes from the Reserve Bank were a vote of firmness in the economic recovery, he said, while unemployment, the equity place of traffic, the housing market and credit availability were all markedly improved from 12 months ago.