Shares in the department store owner rose by more than 6 per cent as investors welcomed the result, which was a little better than expected.
Chief executive Mark McInnes played up the group's preparations for the downturn over the past 24 to 36 months, citing its strong cash flow, low debt and robust business model.
David Jones, which in January flagged the possibility of six quarters of negatives sales growth out to the end of fiscal 2010, is also looking to continuing strong growth in its financial services arm which houses its new David Jones American Express card.
Net profit for the six months ended January 24 rose to $91.16 million, from $88.98 million in the previous corresponding period.
Sales fell 6.4 per cent to $1.06 billion in the half, leading to group earnings before interest and tax (EBIT) of $134.1 million, down 2 per cent.
Its overall EBIT to sales margin was 12.6 per cent, up from 12.1 per cent in the first half of fiscal 2008.
"Even if our forecast of six negative sales quarters eventuates, making the current conditions worse than those experienced in the 1990/91 recession, we are confident that our company will emerge with a strong brand, a loyal customer base, the best brand portfolio and a strong financial base from which to leverage the inevitable upturn," Mr McInnes said.
David Jones shares were up 16 cents, or 6.43 per cent, at $2.65 at 11.37am (AEDT), after touching a morning peak of $2.79.
David Jones said sales for the first seven weeks of the third quarter of fiscal 2009, are on track with budget.
It affirmed its guidance for net profit before one-offs to grow by between 0 and 5 per cent in the second half and for the full fiscal 2009 year.
It is budgeting for a 10 per cent decline in second half like-for-like sales.
It also affirmed its guidance for like-for-like sales to fall by between 3 to 5 per cent in the first half of fiscal 2010 and flat sales in the second half of that year.
"On this basis the company's profit after tax growth guidance for fiscal 2010 is zero to to five per cent," it added.
Mr McInnes sees retail sector sales remaining weak in calendar 2009 ahead of a return to growth in 2010 and 2011.
But David Jones was "well prepared" after using the strong conditions in fiscal 2006 and 2007 to prepare for a downturn.
"In comparison to our peer group of department stores in the US, UK and Australia, David Jones is in an exceptionally strong position having the highest EBIT margin and the lowest debt levels," he said.
David Jones has net debt of less than $100 million.
During the first half, the company's financial services business reported a 7.5 per cent increase in EBIT to $19.7 million, following the launch of its David Jones American Express credit card.
David Jones sees that growth continuing on an annual basis.
"Customers applying and being approved for the new David Jones American Express card are well ahead of our budget and feedback to date is that cardholders are delighted with the value they are getting on the card in the form of loyalty rewards," Mr McInnes said.
However, department store EBIT fell 3.5 per cent to $114.4 million in the first half.
The group's gross profit margin declined to 39.5 per cent from 39.8 per cent.
The total cost of doing business (CODB) percentage for first half was 28.7 per cent, an improvement of 70 basis points on the CODB percentage last year of 29.4 per cent.
"This is a pleasing result given the prevailing retail conditions," the company said.
The company declared an interim dividend of 11 cents per share, fully franked, in line with last year.
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