DJs blames tight belts for slump

DAVID Jones has called out high debt levels, rising mortgage costs and surging energy bills as key factors sapping consumer confidence after it unveiled a 25 per cent slide in full-year profit.

Net profit at the nation’s oldest department store chain came in at $127 million for the year to June, it said yesterday.

The result was the slimmest since South Africa’s Woolworths Holdings bought the business in 2014 and was down from $170 million a year ago.

The retailer absorbed $31 million in costs linked to a restructure of its business, investment in a new food offering and moving its head office from Sydney to Melbourne.

“Despite record low interest rates, the Australian consumer is heavily indebted with recent regulations increasing mortgage costs,” Woolworths said.

“Consumer confidence remains below the baseline.”

Total sales at David Jones rose 1 per cent to $2.21 billion.