News dalla rete ITA

6 Marzo 2020

Australia

DAVID JONES PROFIT PLUNGES AFTER 'SAD AND DIFFICULT' DECEMBER-HALF

Profits at Australia's premier department store chain, David Jones, fell 57 per cent to $20 million in the December-half as heavy discounting exacerbated weak sales and foot traffic. David Jones' total sales for the 26 weeks to December 29 rose 4.9 per cent, buoyed by the inclusion of Boxing Day sales and a new store in New Zealand.After adjusting for the extra trading week, sales were down 0.5 per cent and same-store sales, which strip out new stores and closed stores, slipped 0.4 per cent. Department store profits plunged 78 per cent to just $8 million as gross margins fell 290 basis points to 35.1 per cent, while earnings from financial services rose 9 per cent to $12 million, taking operating profit to $20 million compared with $47 million in the year-ago period and $66 million two years ago.Ian Moir - DJ CEO - said the coronavirus outbreak could weigh on sales during the second half and the retailer was looking at sourcing apparel from regions outside China as the epidemic threatened to disrupt its supply chain.David Jones sales' rose 4.5 per cent in January but fell in February as Chinese tourists were banned from entering the country.However, Mr Moir expects earnings improve in 2021, when David Jones completes a $450 million renovation of its flagship Elizabeth Street store and closes its former menswear store in Market Street, Sydney, reducing rent costs.Foot traffic at the flagship store, which accounts for about 15 per cent of David Jones' total sales, has fallen by one-third since the renovations started last year.The apparel sector remained constrained, highly competitive and promotionally driven and foot traffic in shopping malls continued to fall as customers shifted online. David Jones’ online sales grew by 61.8 per cent in the first half, after 46 per cent growth in the same period last year, and now comprise 10.4 per cent of total sales. (ICE SYDNEY)


Fonte notizia: AFR 20/02/2019