Sales at David Jones increased by eight per cent in the year to June, even though a warm start to winter dented clothing sales.

The South African owned retailer’s total sales rose by 8.4 per cent in the 12 months to June 26, while comparable sales were up 7.0 per cent.

That’s a slowdown from sales growth of 11.2 per cent in the first half of the financial year, and comparable sales growth of 9.7 per cent.

“Group apparel sales in the second half were impacted by the late start to winter and the unseasonably warm weather experienced across the southern hemisphere,” its parent company, South African retailer Woolworths, said in a statement.

Deutsche Bank analysts said the annual sales growth was fairly strong, despite being lower than in the first half.

As a result, they expect “reasonable sales growth” from David Jones’ rival Myer.

David Jones is due to release its annual financial results on August 25.

Woolworths’ group sales increased by 17.1 per cent (12.3 per cent excluding David Jones, which was acquired on 1 August 2014).

Woolworths clothing and general merchandise divisions had a much-improved half, growing sales by 12.5 per cent. Clothing sales were up 11.7 per cent (8.0 per cent in comparable stores) and price movement was 6.6 per cent.

Gross profit margin increased by 0.8 per cent to 48.1 per cent, enhanced by the launch of private label brands into David Jones stores in Australia.

Store costs increased by 13.3 per cent, with a 5.9 per cent increase in space and the costs associated with the new David Jones business, with comparable store costs growing by 3.4 per cent.

Country Road group Sales in Australasia grew by 13.4 per cent and by 0.1 per cent in comparable stores, despite a disappointing performance by Country Road womenswear.

Trading space grew by 16.0 per cent, 14.6 per cent of which is reallocated space within David Jones’ existing store footprint and does not represent additional space to the Group.

Higher markdowns, particularly in Country Road womenswear, resulted in gross profit margin declining by 1.3 per cent to 61.0 per cent.

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