David Jones Limited
(ASX:DJS) has reported a rise in its first half revenue but a fall in its net profit, weighed down by lower earnings from credit card operations.
The department store retailer’s revenue rose 3.8 per cent to $1.042 billion in the same period its net profit fell 4.6 per cent to $70.1 million.
DJs says its fashion, beauty and homewares divisions performed strongly and its online store soared 220 per cent from the prior year on the back of new services being launched.
Credit card earnings declined 53 per cent as a result of DJs moving to a profit-share agreement with joint venture partner American Express.
The profit results come in an eventful period for David Jones with the company only yesterday confirming it is mulling a $3 billion potential merger with rival retailer Myer Holdings Limited
(ASX:MYR).
The company’s executive team has also seen a shake up with Gordon Cairns replacing Peter Mason as Chairman earlier this month and CEO Paul Zahra deciding to stay on in his role after earlier flagging his intention to leave.
A fully franked interim dividend of 10 cents per share has been maintained.
