Tag: DJS

David Jones (DJS) shareholders and South Africa’s Woolworths Ltd will have to wait until Thursday and a case in the Federal Court (not NSW Supreme Court) before the $2.15 billion takeover offer can be completed.

Barring some last minute intervention by Solomon Lew, David Jones (DJS), the country’s oldest department store, will become foreign-owned later this morning.

The $2.15 billion takeover of David Jones (DJS) by the South African retailer, Woolworths, is all but wrapped up following approval from the Foreign Investment Review Board.

Forget the lower net profit from David Jones (DJS) yesterday and concentrate on the details of the financial result – they show the retailer is getting its act together.

Given the 1% to 2% slide in topline and same store sales in its 2012-13 financial year, a weaker result from David Jones (DJS) was always expected by the market.

David Jones hasn’t been competitive with the emerging online retailing sector for years, and in the past six to eight months, its efforts in the analogue retailing space haven’t been too flash either.

Shares in department store group David Jones are in a trading halt while the company hammers out the final make up of a new strategy to try and reinvigorate the group after the trading slump seen in 2011.

Department store owner David Jones yesterday maintained earning guidance after reporting meeting its oft-stated guidance for a profit rise of around 5% for the six months to January 29.

David Jones, Australia’s second-largest department store chain, may have joined the victims of consumer caution brigade among our retailers in the first half of 2011, but it certainly did better than arch rival, Myer.

David Jones shares were easier yesterday after the department store retailer made guidance in reporting its 2009-10 profit of $170.8 million, which was up 9.1%.

Department store group, David Jones has pulled out of a major shopping centre in the second decision of its kind in the past couple of weeks.

David Jones shares finished up 13 cents, or 2.8% yesterday after the company upgraded 2010 earnings following a solid first half sales performance.

The Senate has a committee running around the country trying to find out if the stimulus spending by the federal government has worked.

Upmarket retailer, David Jones had a very different reception from the market yesterday to its interim profit than it got last month when it flagged a solid increase was on the cards.

Upmarket retailer, David Jones (DJS) today delivered a satisfying half year profit of $89 million, pushing the shares up by 4.8% to $3.71.

One of Australia's oldest retailers, David Jones (DJS) has posted encouraging sales results for the second quarter of financial year 2008, and projected an increased first half profit guidance.

Another reason perhaps for the RBA wiping its brow and saying 'whew we got the rise in just in time', can be found in the confirmed fourth quarter sales figures from leading department store retailer, David Jones.

A week is supposed to be a long time in politics, in retailing these days it seems to be very, very quick.

Take David Jones for instance. It was only last Wednesday that the retailer was warning the market that it might lose a store in the Eastgardens mall in Sydney’s Eastern Suburbs.

The retailer said:

“The lease relating to David Jones’ Eastgardens (NSW) store expires in October 2007. The Company has been in discussions with Terrace Towers (the owner of the centre) although to date, agreement has not been reached.”

Mr McInnes said, “Whilst our firm preference is to enter a long-term Eastgardens lease, we are not yet in a position to do so. In the event that an acceptable agreement is not reached, we believe that Myer is likely to enter the Centre”.

Yesterday that expectation was realised with the news that the now privately-owned Myer will replace rival David Jones at the Westfield’s Eastgardens.

And Mr McInnes made it quite clear why the retailer had withdrawn from the centre:

“Despite lengthy negotiations with Terrace Towers we have been unable to reach agreement on terms that are economically feasible for our Company and in the interests of our shareholders.

“The profit that would be generated under the proposed terms of the lease will be captured as we transfer David Jones’ customers to our Bondi Junction and Sydney CBD stores.

This can be achieved at a vastly reduced investment on David Jones’ part in comparison to renewing the lease on the terms proposed.

“We believe that given our decision not to accept Terrace Towers’ terms and renew our Eastgardens lease, Myer will enter the centre on the terms we declined.

“In our view entering into a lease on the terms proposed by Terrace Towers reflects a decision based on short term sales gain with limited long term benefit for the lessee.

“David Jones’ Store Portfolio strategy is very straight forward – we will not commit to a long term lease on the basis of short term Sales growth – our decision will always be based on what delivers the best overall value to our shareholders over the life of each lease,” Mr McInnes said.

“Our Eastgardens store profit has been in decline since the opening of the redeveloped Bondi Junction centre in 2004.

A day after the Australian Bureau of Statistics produced retail sales figures showing good times in our shops,department store retailer, David Jones, has confirmed the strength of the boom.

But at the same time the retailer hinted that it could be losing sales from two Sydney suburban stores if lease negotiations are not settled.

DJS said third quarter sales rose 8.4 per cent jump, taking the nine month sales figures to $1.47 billion. That’s up 8 per cent on the first 9 months of 2006.

That saw the shares rise, then ease several cents to close at$4.83 after hitting a day’s high of $4.93 yesterday.

To make it better the third and fourth quarters of 2006 are when David Jones’ rebound from a couple of sluggish years first appeared and started powering the company’s sales, earnings and share price higher.

CEO Mark McInnes warned at the interim report earlier this year that the growth rate might slow because of the pick up in the third and fourth quarters of 2006 but the company continues to beat expectations.

The ABS said March sales rose 1.1 per cent compared to February, with Department store sales up 3.6 per cent alone (but that might have been influenced by Easter and not fully adjusted, according to some retail analysts).

The ABS said that in original terms (unadjusted which is what the market works off) March sales were 8.2 per cent higher than March 2006.

March quarter sales were up two per cent, or up 7.8 per cent in original terms on the March quarter of 2006 so David Jones has been better than ‘system’

Mr McInnes said the company benefited from strong performances across all categories, including men’s and women’s apparel, footwear and homewares.

“All states delivered strong Sales growth with Western Australia being the stand out performer.”

The market obviously got the David Jones profit right yesterday.

After Woolies, David Jones is the ‘glamour’ retailer these days, thanks to things like its glitzy Sydney winter fashion launch on Tuesday night and the quality of its sales and earnings in the past year.

So what did David Jones do that set its shares alight yesterday?