What: The Australian department store saw 282% growth in adjusted earnings for 2021, with double-digit second-half sales growth.

Why it is important: Gains were fueled by reductions in costs, markdowns and debt, improved inventory and government wage subsidies and rent relief. In line with the company’s strategy to exit unproductive space, trading space was further reduced by 6.3% over the year.

Sales grew 2.3% to USD 1.51 billion in the 52 weeks to June 27 2021, with like-for-like sales up 0.9% over the period and a 17.1% jump in second-half sales — after falling 17% in the same period last year. Online sales grew by 24.4% , contributing 17.3% to total sales for the year.

Adjusted CRG operating profits surged 158.3% to USD 111.7 million, on sales of USD 756.8 million, up 13.5% over the period, with a 15.3% rise in like-for-like sales and second-half sales growth of 39.5%.

Sales in the retailer’s Elizabeth Street, Sydney flagship grew by 16.6% during the year, in spite of lower footfall in the city’s central business district due to COVID-19 disruptions.

David Jones’ Profit Surges