David Jones Ltd, Australia's No.2 department store chain and rival to Myer, reported total sales in its Financial Year (FY12) has dropped 4.6 per cent from a year ago.
Total sales for the year ended July registered at only $1.868 billion. The latest figures confirmed a previous guidance the company will experience a sharp fall in profit for the year.
Also down were like-for-like sales, which fell 4.3 per cent a year ago, as well as its fourth quarter sales, only $455.8 million, or 1.3 per cent lower than the previous period in review.
"While trading conditions continued to be challenging throughout the quarter, we did see an improvement on our sales tracking," David Jones chief executive Paul Zahra said in a statement.
David Jones Ltd, an up-market Australian department store chain, has 37 stores located in most Australian states and territories. It is believed to be the oldest continuously operating department store in the world still trading under its original name. Its main department store rival is Myer.
The company expects second-half earnings could take a beating and drop to 40 per cent as it works in a costly overhaul of its strategy, while putting more service staff and improving its online offerings.
On Wednesday, shares closed at A$2.58, up from a June low of A$2.10, but still its weakest in over three years.
The best-performing categories in the fourth quarter, which included the company's mid-year sale, were womenswear, beauty, menswear, shoes and accessories.
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