David Jones H1 profit down 14pc as sales slide and spending rises UPMARKET department store operator David Jones today posted a 13.5 per cent fall in fiscal first-half profit, as sales fell and it ramped up spending to win back customers. David Jones, said net profit for the six months to January 26 totalled $73.5 million. Sales totalled $1 billion, down from the pervious year's $1.01bn. "We are confident the investment we are making will provide us with a strong sustainable business capable of addressing the retail structural changes currently taking place and positioning us for long term success," chief executive Paul Zahra said in a statement. David Jones has suffered from a trend of Australian shoppers moving away from the high street to look for cheaper goods online. At the same time, cautious consumers have limited discretionary purchases amid an uncertain outlook for the economy. In the middle of last year, management also faced the distraction of handling a $1.65bn takeover approach by a mysterious British entity, which sent shares in the department store chain up as much as 18 per cent before the offer was quickly withdrawn. A regulatory investigation by the Australian Securities & Investments Commission into disclosure and trading in David Jones stock followed. However, a string of interest rate cuts by the Reserve Bank of Australia since November 2011 aimed at boosting non-mining sectors of the economy such as housing and retail is showing signs of working. Reports this month showed consumer confidence at a two-year high for the second straight month in March, and house prices rising sharply in the fourth quarter of last year. Myer, Australia's biggest department-store chain by market value, last week posted a higher first-half profit citing a surprise uptick in sales, which have now risen for three consecutive quarters. David Jones said it would pay an interim dividend of 10c a share, slightly lower than the previous year's 10.5c.