Tuesday, 7 September 2010

Department Stores Cut Costs As They Get Ready To Talk Numbers 7/9/10

It seems that cost cutting is the new black for Australian department stores. David Jones and Myer have both reigned in their spending– they have to reveal their full-year results later this month, and simply aren’t getting away with the excesses of the past. According to Deutsche’s retail analysts, David Jones is forecast to deliver a full-year net profit after tax of $171m, up 10 per cent, with earnings before interest and tax to rise 11 per cent to $251m. Myer is expected to report underlying net profit after tax of $165m, up 52 per cent with EBIT up 14 per cent to $269m. Gross margins are expected to be resilient in spite of industry discounting that reflects the benefits from supplier negotiations at DJs and the high-margin private label program at Myer. Retail trading conditions are still tough in the wake of the GFC, but things are looking up. Retailers are expecting a better Christmas this year than they have had in a while.

Image credit: theage.com.au

Follow MO Luxury's Facebook page for more luxury news...

No comments:

Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au