DJs directors snapped up shares ahead of sales results
On the release of the better-than-expected first-quarter sales, the share price soared more than 6 per cent.
Mr Vamos bought his stock at $2.69 and Mr Clapham at $2.67, according to notices lodged with the Australian Securities Exchange. This compares with DJs' closing price on Tuesday of $3.08.
The company is not disputing that all directors, including Mr Vamos and Mr Clapham, had the updated sales numbers at the time of the purchase.
Chairman Peter Mason said: "Both directors obtained my prior approval to their share purchases. In my view, they did not possess price-sensitive information. Both directors acquired the shares during the company's trading window."
When Fairfax Media sought comment from the corporate regulator, the Australian Securities and Investments Commission, late on Tuesday, its spokesman Matthew Abbott said: "I cannot comment on the DJs example specifically, but more generally ASIC is always interested in any conduct which may harm, or give the perception of harming, market integrity."
The sales numbers were crucial because the market had been expecting sales could continue to decline. Instead they rose 2.1 per cent and, on a same store basis, after accounting for disruption in one store, were up 0.6 per cent.
In the previous quarter sales fell 1.3 per cent. But for the first quarter of 2013, all quarterly like-for-like sales have been negative since 2011.
The improved sales numbers released last week vindicated the strategy of chief executive Paul Zahra, who announced a few weeks ago his intention to resign.
Fairfax Media is not inferring that either director has engaged in insider trading.
Frequently Asked Questions about this Article…
David Jones directors Steve Vamos and Leigh Clapham purchased shares just before the release of the company's quarterly sales results, which turned out to be better than expected. This strategic timing allowed them to benefit from the subsequent rise in share price.
David Jones directors Steve Vamos and Leigh Clapham purchased shares two days before the release of the company's quarterly sales numbers. They did so with prior approval from the chairman, who believed they did not possess price-sensitive information at the time.
According to Chairman Peter Mason, the directors did not possess price-sensitive information when they bought the shares. They acquired the shares during the company's trading window with prior approval, suggesting compliance with trading regulations.
The market reacted positively to David Jones' better-than-expected first-quarter sales results, with the share price soaring more than 6% following the announcement.
The market reacted positively to David Jones' better-than-expected sales results, with the share price soaring more than 6% following the announcement.
David Jones reported a 2.1% increase in sales for the first quarter, with a 0.6% rise on a same-store basis after accounting for disruptions in one store.
David Jones reported a 2.1% increase in sales for the first quarter, with a 0.6% rise on a same-store basis after accounting for disruptions in one store. This was a significant improvement compared to the previous quarter's 1.3% decline.
Yes, the directors had access to the updated sales numbers at the time of their share purchases. However, the chairman stated that they did not possess price-sensitive information.
The improved sales numbers vindicated the strategy of CEO Paul Zahra, who had announced his intention to resign. The positive results supported the effectiveness of the company's strategic direction.
Before the recent positive results, David Jones had experienced a decline in sales, with the previous quarter seeing a 1.3% drop and all quarterly like-for-like sales being negative since 2011.
The ASIC is interested in any conduct that may harm or give the perception of harming market integrity. While they did not comment specifically on the David Jones case, they monitor such activities closely.
The improved sales numbers were significant as they vindicated the strategy of CEO Paul Zahra, who had announced his intention to resign a few weeks prior.
For the first quarter of 2013, David Jones experienced a positive sales performance, contrasting with previous quarters since 2011, where all quarterly like-for-like sales had been negative.
The Australian Securities and Investments Commission (ASIC) is interested in any conduct that may harm or give the perception of harming market integrity, although they did not comment specifically on the David Jones case.
The market had been expecting a continued decline in sales for David Jones. However, the actual results showed an increase, which was a positive surprise for investors.
No, Fairfax Media did not infer that either director engaged in insider trading or any wrongdoing.
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