Shares in David Jones soared 10 per cent after news the upmarket retailer had boosted its profit guidance on strong sales results that could signal the impact of the economic downturn is waning.
Shares rose 42 cents to $4.55 by the close.
That came shortly after the company announced conditions had improved in May and June, after a flat performance in April, and that it was now trading ahead of the same months in 2008 on a total and like-for-like sales basis.
It now sees net profit for the second half of fiscal 2009 rising by 20 per cent 30 per cent on the same period last year, compared to earlier guidance of growth of zero to five per cent.
Net profit for the year ending July 25 is expected to rise by eight to 12 per cent, compared to a previous forecast of zero to five per cent lift.
"May and June reflects a significant positive shift in our trading performance and demonstrates the resilience of the David Jones customer and brand strategy,'' chief executive Mark McInnes said in a statement.
History has shown that we are `first in and first out' of a downturn.''
Mr McInnes said David Jones will not be holding its annual July stock clearance sale.
"Whilst we still have to trade through July to complete the fourth quarter, and we are not planning to repeat the clearance of excess inventory undertaken in July 2008, our trading to date has been pleasing and well above our expectations,'' he said.
David Jones also reaffirmed its forecast for zero to five per cent net profit growth in the new fiscal 2010 year.
A further update on the group's outlook will be provided at its fourth quarter sales announcement in August.
AAP
