David Jones, Australia's second-largest department store chain, said second-quarter like-for-like sales fell 2.7 per cent.
Sales fell to $617.6 million in the three months to the end of January, compared with $634.7 million a year earlier.
In early trade, David Jones shares fell 5 cents, or 1.1 per cent, $4.57.
David Jones said it now sees its profit growth for the second-half of this financial year at the lower end of its forecast for 5-10 per cent growth, and similarly for the year to July 2012, it sees profit growth likely to be at the lower end of the 5-10 per cent range.
David Jones chief executive Paul Zahra said the department store chain experienced a ‘‘challenging second quarter with wetter and cooler weather, a decline in consumer sentiment, significant discounting in the sector in the lead up to Christmas and the impact of the Queensland floods on six of our stores’’.
‘‘Consumer shopping behaviour continued to be patchy throughout the second quarter of 2011 and we have seen no material signs that this is changing,’’ he said.
‘‘Sales on a state-by-state basis, excluding Queensland, were consistent, with no discernable trend emerging.’’
Despite a very competitive retail environment in the second quarter the company had managed its cost position well, he said.
‘‘I am pleased to report that we have also effectively managed our gross profit margin and inventory,’’ Mr Zahra said.
Mr Zahra said he was pleased with the launch of the new Claremont Quarter centre store in Perth which had 85 per cent more selling space.
Mr Zahra said the newly redeveloped Bourke Street Mall Melbourne CBD stores had continued to perform strongly and there had been an increase in foot traffic in Sydney CBD stores due to the opening of the new Westfield Sydney centre.
David Jones also announced that it had signed a lease agreement with GPT to open a new store at their Highpoint shopping centre in Victoria.
‘‘The new store will be part of a bigger development that GPT is undertaking and involves adding a new fashion wing to the centre,’’ Mr Zahra said.
Work on the development is due to commence in March 2011 and the new David Jones store is expected to open for trade in the first quarter of 2013.
Reuters, AAP
