Department store David Jones said it faced “challenging trading” throughout the second quarter of the year with cooler weather, the Queensland floods and a decline in consumer sentiment.

As a result, the company has reported a 2.7 per cent decline from the previous corresponding period of total like-for-like sales revenue from $634.7 million to $617.6 million.

David Jones CEO Paul Zahra has reaffirmed that its full year profit guidance for 2011 remains unchanged at 5 to 10 per cent, “although we expect it will be at the lower end of this range”, subject to that there will be no further adverse changes in the macro economic environment..

“We experienced a challenging second quarter with wetter and cooler weather, a decline in consumer sentiment, significant discounting in the sector in the lead up Christmas and the impact of the Queensland floods on six of our stores,” he said.

“Consumer shopping behaviour continued to be patchy throughout 2Q11 and we have seen no material signs that this is changing. Sales on state-by-state basis (excluding Queensland) were consistent with no discernable trend emerging.

 “Despite a very competitive retail environment in 2Q11 with heavy promotional activity by retailers, we have managed our cost position well and I am pleased that we have also effectively managed our gross profit margin and inventory.”

Going forward, the company said it will continue to evolve its brand portfolio and the refurbishment and openings of new stores.