He warned against extrapolating the strong sales surge given it was against a period of government imposed lockdowns in the prior year.
“During the last six weeks of the period, which is directly comparable to the prior period, group turnover and concession sales increased by 8.8 per cent, (including the Country Road Group brands), underpinned by strong Black Friday and festive season trade,” he said in a statement to the South African stock exchange.
A spokesman for David Jones said, “as predicted, Christmas came late” and the retailer performed beyond internal expectations.
Mr Bagattini reiterated earlier comments that the sale of David Jones was the correct decision, and he expects to realise value greater than the carrying value of the David Jones assets.
CRG sales gained 25.5 per cent in the December half. In the last six weeks of the key trading period sales were up 8.5 per cent.
The update came a day after rival Myer announced it reached a deal to range the CRG brands from February, starting with Politix, Witchery and Mimco. Country Road Kids and Country Road Home and Trenery will launch in July.
The deal with Myer has been in the works for months, and makes good on the promise by Mr Bagattini he has bigger plans for the retailer, despite it being a blow to David Jones.
A David Jones spokesman said CRG will remain an important part of the product range, alongside new and relevant premium fashion brands.
“Over 70 per cent of our current brand portfolio stocked exclusively in our stores,” he said.
“Post-pandemic we’ve seen David Jones customers further trading up from mainstream to more premium and luxury brands.”
David Jones executive team has meanwhile been talking to brand partners about its new ownership, according to sources. So far, it appears that Anchorage is allowing David Jones boss Scott Fyfe to get on managing the business, deploying his overhaul strategy which includes adding brands and shrinking floor space.
Over the past two years, David Jones has added over 200 new labels. It will offer Victoria Beckham, Michael Lo, JW Anderson, Stone Island, Sordo and Pangaia this year.
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