Department store group David Jones Ltd has warned that its sales growth is likely to slump in the second half of the next fiscal year.

Mark McInnes, chief executive, said that sales are forecast to be flat for the first half of 2005, pushing yearly sales increase down to between 1.5 to 2.5 per cent, from 4.5 per cent in the year ending 31 July.

Fourth-quarter sales rose 13.6 per cent to $461.8 million compared to the previous year, with like-for-like sales increasing 7.2 per cent.

The company said that sales if women's apparel were especially pleasing.