Melbourne-based Myer, which made its stock market debut on Monday after a $2.4 billion initial public offer, said its first quarter sales came in at $717.1 million.
Sales were up 5.2 per cent on year, or 2.9 per cent on a like-for-like basis, outpacing sales growth seen at its upmarket rival David Jones.
Sydney-based David Jones, which targets more affluent customers with brands such as Christian Louboutin handbags and Burberry overcoats, reported first quarter sales of $452.1 million, up 2.2 per cent on year or 0.8 per cent on a like-for-like basis.
But David Jones chief executive Mark McInnes said momentum was building in sales, with improvements seen "month on month, week on week" during the quarter. So far in November, the group has seen the biggest jump in sales in more than two years.
Sales were up 5.2 per cent on year, or 2.9 per cent on a like-for-like basis, outpacing sales growth seen at its upmarket rival David Jones.
Sydney-based David Jones, which targets more affluent customers with brands such as Christian Louboutin handbags and Burberry overcoats, reported first quarter sales of $452.1 million, up 2.2 per cent on year or 0.8 per cent on a like-for-like basis.
But David Jones chief executive Mark McInnes said momentum was building in sales, with improvements seen "month on month, week on week" during the quarter. So far in November, the group has seen the biggest jump in sales in more than two years.
The results, which follow official data released yesterday that showed a surprise drop in Australian retail sales in September, confirm the relatively buoyant conditions still being enjoyed by the nation's big retailers.
The nation's resilient employment numbers, stable house prices and the sharp rise in the Australian equity market in the past six months have helped boost consumer confidence.
"All the signs are positive but I think the market is still susceptible to external shocks," Mr McInnes told reporters.
Analysts have voiced concerns that without government stimulus checks for consumers to spend, the second half of the year might be more challenging for retailers in general than the first. Rising interest rates will also be a test for consumer sentiment going into the holiday period, although McInnes noted that the gains in equity markets have helped counter concern among his customers.
Barring any major economic shocks, Christmas trading is likely to be "good", Mr McInnes said.
Both Myer and David Jones said they've seen continued strength in core categories including cosmetics and apparel.
Myer said it also saw a marked improvement in homeware sales during the quarter, particularly furniture, which it said reflects more confident consumer behavior.
Myer confirmed that it is on track to achieve its prospectus pro forma forecast for growth in total sales revenue for the 2010 financial year of 3 per cent and earnings before interest and tax growth of 10.7 per cent on a pro forma basis.
"The business is in good shape as we approach the important Christmas trading period," Myer chief executive Bernie Brookes said. "Consumer sentiment is stronger than this time last year," he said. Myer recorded sales growth of 3.1 per cent on year in the quarter ended July 25.
David Jones' Mr McInnes said that his company's first quarter sales were stronger than expected.
"Our better-than-expected trading in (the first quarter) is a good sign for our business as we enter the all-important Christmas trading period, especially given we will be cycling the worst trading conditions we have experienced in more than 20 years," McInnes said in a statement.
He said there are some key drivers to look forward to in the second quarter, including the opening of stage one of its Bourke Street store redevelopment in Melbourne and improving economic conditions.
"Having said that, it is too early for us to provide any guidance update until after we have traded through the all-important second quarter, which is the key component of our company's first half profit," McInnes said.
The group has previously said it expects first half like-for-like sales to be down 3 per cent to 5 per cent on year, with full year earnings expected to rise 0 per cent to 5 per cent.
"The conservatism is prudent," Citi analysts said. "We estimate the month of December can account for one-third of a department store's yearly profit."
David Jones shares were down 3.3 per cent at $5.24 by late afternoon, having made strong gains in recent months amid increasing optimism about the economic outlook.
Myer was down 1 per cent at $3.80, still well below the $4.10 a share investors paid for shares in its float.
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