David Jones has posted good result this morning with sales growth the best for three years. From the AFR:
David Jones’s total sales rose 4.7 per cent to $618.1 million in the January quarter, the best rate of growth since 2010, as strong growth from the retailer’s online store augmented gains from bricks and mortar stores.
Like-for-like sales rose 2.1 per cent, the strongest growth for more than three years, after rising 0.6 per cent in the October quarter (excluding disruption from the refurbishment of one of David Jones’s Canberra stores). Comparable store sales had declined 1.4 per cent in the January quarter last year.
Excluding the consumer electronics category, which converted to a concession-style model in October, like-for-like sales in the three months ending January rose 3.6 per cent.
Analysts had been forecasting total sales growth between 4.1 per cent and 5.6 per cent and comparable store growth between 1 per cent and 2.8 per cent.
Consumer charging back? I don’t think so. We’ve had a solid Christmas but I expect the steady drum beat of bad news around employment to keep a lid firmly in place, as seen in this morning’s unemployment expectations. I don’t think Aussies generally believe the current house price surge is sustainable and confidence measures are picking that up pretty clearly.
As well, rhe RBA released credit card transaction data yesterday and it showed only a faint pulse:
There was a strong seasonal bounce in transactions to a record high but, as you can see, total balances are unmoved for two years and those accruing interest have been falling, with a little hook to offer the slim chance that the consumer has not had a catastrophic infarction…
I expect a better year for retail but no boom and eroding conditions in the second half.
