Djs Boss Sells $7m Shares

Djs Boss Sells $7m Shares

Sydney Morning Herald

Saturday October 4, 2008

Michael Evans

AS DAVID JONES executives were detailing the retailer's move into the financial services industry this week, their boss Mark McInnes was busy selling nearly $7 million worth of shares in the company.

The DJs chief executive offloaded a big portion of his personal investment in the company this week, selling 1.6 million shares to help pay off his North Bondi home.

On Tuesday as the retailer launched its new credit card product, Mr McInnes was selling more than 271,000 shares in DJs. A day earlier he sold more than 740,000 shares. He kept selling on Wednesday and Thursday.

In a statement on Friday, the retailer said Mr McInnes informed the board in March of his intention to sell stock in September.

In February, DJs described the significance of its credit card push as "a company transforming transaction for David Jones that will deliver significant earnings growth and value to shareholders over time".

The 1.6 million shares Mr McInnes sold equate roughly to a share grant he received on Tuesday as part of long-term incentives.

Mr McInnes, who still owns more than 1 million shares, also sold a parcel of shares in March to fund the initial purchase of the apartment. He spent $1.6 million last December buying an apartment on the top floor of a Ramsgate Avenue block with sweeping views over the beach. He later bought out the rest of the floor of the block for a further $5.5 million, expanding to the whole 215 square metre floor.

The large share sale by a senior retailing executive further undermines confidence in the outlook for the sector, coming after Harvey Norman boss Gerry Harvey issued a profit warning this week.

Mr Harvey said the economic outlook for retailing was dire and that his company would likely suffer a 20 per cent drop in profits.

David Jones, one of the best-performing retail stocks in recent years, saw its share fall 38c, or 9 per cent, to $3.72 yesterday as it went ex-dividend.

David Jones forecasts profit after tax for 2009 of between 5 and 10 per cent.