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:
Post a Comment