David Jones Ltd
(ASX:DJS) has posted a 5.2 per cent lift in first half earnings, but cautioned that volatile markets and consumer sentiment could force full year net profit to dip to the lower end of its guidance.
In the six months ended on 29 January 2011 the department store retailer posted a record net profit of $105.7 million, up from $100.5 million the same time a year earlier.
In the same period revenue came in steady at $1.08 billion, while the company’s gross profit margin slipped to 39.7 per cent from 40 per cent a year before.
CEO Paul Zahra says recent trading has been negatively impacted by adverse weather, such as the floods in Queensland and Victoria, earthquake and tsunami in Japan and unrest in Libya.
Mr Zahra has confirmed David Jones full year guidance of between 5 to 10 per cent growth, but cautions that if consumer shopping behaviour continues in the same way, growth will be at the lower end of guidance.
David Jones has declared a fully franked interim dividend of 13 cents per share.
In the 2010 financial year David Jones booked a net profit of $170.8 million.
