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SYDNEY - Top-end Australian retailer David Jones Ltd is confident about the 2008 financial year, saying it doesn't foresee any major risks up ahead.
However, a federal election date clash with the Christmas shopping season or the cancellation of the spring racing carnival because of horse flu could impact on sales.
David Jones chief executive Mark McInnes told Sky News Australia he did not agree with suggestions by some analysts that the retail cycle had hit the top.
"We don't think our profit after tax growth or dividend growth is near the peak.
"The economic cycle for the next 12 months still looks pretty good ... so I'd say they've got the next 12 months wrong," McInnes said.
Last week David Jones posted a 35 per cent jump in net profit to $109.52 million ($130.11 million) for the 12 months to July 29, which came a day after its rival Myer revealed an $84 million ($99.79 million) net profit.
David Jones sales were up 8.9 per cent in the year -- or 8.3 per cent on a like-for-like basis, discounting the effect of more store openings -- to $1.98 billion in 2007.
McInnes acknowledged that the next few months could be affected by the federal election.
"Our history says you have a bad week leading up to the election and you get most of it back in the weeks later.
"We are hoping that the election is early November and not late November because as you get close to Christmas trading gets bigger and it's harder to make that up.
"But we don't feel it would have a long term material impact unless it was in December and then we might be pretty upset."
McInnes said the retailer was already selling outfits for the spring carnival in Victoria and that a cancellation of the event because of equine influenza (EI) would not have a major impact on sales.
"We are already set up for the spring racing carnival and customers are already buying ... so this might be one of those that we cross our fingers and touch wood.
"It's not that material on our business that if it didn't go ahead it would change our guidance for profit.
"But it is a full price selling opportunity for us that we'd prefer not to miss."
- AAP
