David Jones Australia: Could David Jones be the business comeback story of 2026?

ANALYSIS — David Jones has made an impressive report Profit increase of 325 percent following the completion of a $250 million corporate facelift.

David Jones also reported a 10 percent increase in digital sales, following a major website re-platforming and the launch of a new shoppable mobile app.

This despite $95 million in total losses threatening the company’s survival, and questions about the company’s relevance in a digital world.

Just looking at their sales figures makes you wonder: could David Jones be the business recovery story of 2026?

David Jones CEO Scott Fyfe in April announced robust sales results for the company in the nine months leading up to March 2026, despite heavy losses.

He said the company’s $250 million transformation plan, the ‘$250 million Vision 2025+’ strategy, was now complete and a new five-year plan, called INSPIRE30, would ensure the company continued its recovery and growth.

David Jones’ changes include the permanent closure of two stores, in Castle Hill and Tuggerah in NSW.

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The refurbishment of six of their stores in Chatswood and Bondi Junction in Sydney, and Bourke Street, Chadstone, Southland and Burwood in Melbourne has been completed and all stores are fully operational again.

Retail historian Dr Matthew Bailey from Macquarie University said this Extra today The company’s significant losses are due to “structural challenges and immediate, long-term issues.”

“So everyone is aware of the immediate issues – cost of living, online retail, increased competition,” explains Dr Bailey.

“Long-term structural issues include labor costs and a slew of retailers taking chunks out of what was once a department store.”

When it comes to the future of David Jones, Dr Bailey predicts ‘fewer stores’ and ‘smaller stores’.

This is exactly what David Jones has done, in addition to further aligning with high-margin luxury and exclusive brands.

Megan Gale is David Jones’ best-known brand ambassador, previously joined by models Victoria Lee and Magnolia Maymuru.

Myer, on the other hand, has focused on affordable brands, modernizing its store design and digital sales.

In 2025, Myer acquired Premier Investments for $950 million in 2024, making them owners of several popular brands they house, including Just Jeans, Jay Jays and Portmans.

This major acquisition means Myer is now a huge retail conglomerate, and their ownership of these brands means higher profit margins.

Myer’s brand ambassadors include models Jennifer Hawkins, Rachael Finch and Kris Smith, as well as Australian actress Asher Keddie.

Nevertheless, challenges remain for David Jones, Myer and the wider physical retail sector.

“It is no secret that both department stores, such as David Jones and Myer, are struggling with their physical offering to maintain relevance for consumers,” retail expert Amanda Stevens previously told nine.com.au.

“I think this is the continuation of the evolution we’re seeing in the retail space.”

While David Jones’ reported losses are worrying, their latest sales figures mean they can’t be written off yet.

If their sales continue to rise, David Jones could have a good chance of survival.

And if their iconic Sydney Christmas display is rumored to return in 2026 – after being demolished in 2025, much to the chagrin of shoppers – that would be the ultimate triumph.

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