Could David Jones be the business comeback story of 2026?

ANALYSIS -- David Jones has reported an impressive 325 per cent surge in earnings following the completion of a $250m business facelift.

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

This is despite $95m in overall losses threatening its very survival, and questions about the company's relevance in a digital world.

Looking at their sales figures alone, you can't help but wonder: could David Jones be the business bounce back story of 2026?

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

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

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

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The refurbishment of six of their stores at Chatswood and Bondi Junction in Sydney, and Bourke Street, Chadstone, Southland, and Burwood in Melbourne, has been completed, with all stores returning to full trade.

Retail historian Dr Matthew Bailey from Macquarie University has told Today Extra the company's significant losses are the result of "long-term structural challenges and immediate problems".

"So everyone is familiar with the immediate problems – cost of living, online retailing, increased competition," Dr Bailey explained.

"Longer structural problems include cost of labour, and a whole range of retailers that have taken chunks out of what used to be 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 been doing, alongside further alignment with luxury and exclusive, high-margin brands.

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

In contrast, Myer has focused on affordable brands, modernises store layouts and digital sales.

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

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

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

Nevertheless, challenges persist for David Jones, Myer, and the broader brick-and-mortar retail sector.

"It's no secret both department stores like David Jones and Myer have struggled with their bricks and mortar offering to maintain relevance with consumers," retail expert Amanda Stevens has previously told nine.com.au.

"I think it's the continuation of evolution we're seeing in the retail space."

While David Jones' reported losses are concerning, their latest sales figures means they can't be written off just yet.

If their sales figures continue to trend upwards, David Jones could have a fighting chance of survival.

And if rumours their iconic Christmas display in Sydney will make a return in 2026 – after being scrapped in 2025, much to the distress of shoppers – that would be the ultimate triumph.

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