Retailer David Jones managed an increase in net profit in the six months to January 24, thanks in large part to the credit card deal it signed with American Express last year.
DJs switched from offering a proprietary store card to issuing a co-branded Amex credit card last September. And, according to a report in the
Sydney Morning Herald today, it was able to transfer $374.3 million of debt-funded receivables off its balance sheet in the process.
A total of $432 million of debt was repaid during the period. As a result, at December 31 the company had only $77 million of net debt.
DJs reported net profit of $91.2 million for the half, an increase of 2.4 per cent over the previous corresponding period.
The company did not disclose how many of its customers had signed up for the new card. Chief executive Mark McInnes did say customers were "taking it up in droves".