Australia's David Jones raises profit guidance
MELBOURNE, Aug 14 (Reuters) - Australian upmarket department store chain David Jones Ltd (DJS.AX) raised its profit forecast on Thursday, predicting 20-25 percent growth in the second half.
The 36-store chain said net profit for the six months to July was set to total A$46-A$48 million ($40-$42 million), up 20-25 percent from a year earlier. David Jones also reported fourth-quarter like-for-like sales growth of 0.8 percent.
"Despite volatile trading in second-half 2008 and the requirement to clear seasonal stock, our gross profit percentage is up approximately 10 basis points on second-half 2007," the firm said in a trading update.
"This means we are well placed to deliver our gross profit margins within our target range of 39.5-40.0 percent throughout fiscal 2009-fiscal 2012."
Australian retailers have been hit by a slowdown in discretionary spending as consumers juggle high interest rates and rising food and petrol prices.
Shares in David Jones, which mainly competes with the larger, private equity-owned Myer chain, have fallen 32 percent this year compared with a 20 percent fall for the broader market .AXJO. ($1=A$1.14) (Reporting by Victoria Thieberger and Mark bendeich, editing by Mette Fraende)
