David Jones posted its stronger sales growth from its rival Myer to 1.4 per cent in the third quarter, but still below analyst expectations.

Figures on David Jones' upmarket department showed a growth of 1.4 per cent in the third quarter, which is slightly better than the same period last year.

Several analysts predicted its sales growth will increase by 2 per cent.

Sales of David Jones reached $417.4 million between January 24 and April 24 of this year, showing a slight increase from $411.6 million from the previous year.

David Jones' chief executive Mark McInnes stated the retail conditions were difficult.

“As we expected, trading in 3Q10 has been challenging, although in line with our forecasts,” Mr. McInnes said in a statement.

“We have not seen anything in the market that we did not expect, other than the unseasonably warm weather.”

Mr. McInnes said the company will continue to follow its previous guidance of profit growth between 5 and ten per cent for the full year. However, he adds that reaching the target growth is unlikely until a retail recovery goes back to normal.

“As stated in our 1H10 Results announcement in March, we remain very cautious about cycling the Government Stimulus in 4Q10 and expect challenging conditions to continue for this quarter.”