Shares in David Jones Limited (ASX:DJS) are expected in slide this morning after the department store revealed a shock profit downgrade late yesterday.
Blaming an unprecedented deterioration in trading conditions, DJs now expects total sales to plummet 11 per cent in the fourth quarter of 2011.
As a result the company expects its second half profit will reach between $62 million and $64 million, up to 12 per cent down from 2010.
Full-year profit is expected fall to between $167.7 million and $169.7 million, between 0.5 per cent and 2 per cent down on the year before.
Yesterday shares in David Jones closed 1.76 per cent lower at $3.91.
On the same day, the latest Index of Consumer Sentiment from Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute showed consumer confidence has sunk to its lowest level since the Global Financial Crisis.
In the six months to January 29, David Jones reported a net profit of $105.7 million.
