David Jones bumper profit

David Jones has reaffirmed it is well positioned for the current year after posting a 35% jump in net profit.

The retailer today unveiled an increase in annual net profit to $109.5 million.

DJ’s CEO, Mark McInnes, says the business looked set to continue benefiting from the unique opportunities arising as a result of the recent industry restructure, the benefit of a strong management team and a proven “House of Brands” business model.

“We are well positioned to continue to deliver PAT (profit after tax) and dividend growth for shareholders throughout the full year 2008,” McInnes says.

DJ’s sales revenue grew by 8.9% in full year 2007 to $1983.2 million from $1821.6 million in the previous year.

Like-for-like sales grew by 8.3% in the year just ended.

The financial services business was strong, reporting growth of 5.8% in EBIT to $36.1 million from $34.1 million in 2006.

Capital expenditure for the year just ended was $62.2 million, but it included expenditure on the new Burwood (Sydney) and Chermside (Brisbane) stores.

The company reaffirmed the current year’s PAT growth guidance of 5% to 10% on the increased full year profit-after-tax base.

Inside Retail