Department store giant David Jones reveals $95m loss amid pullback in discretionary spending

Struggling department store giant David Jones slumped to a near $96 million loss in 2025 as persistent cost-of-living pressures dampen consumer demand for luxury clothing and accessories.

Latest accounts filed with the corporate regulator revealed David Jones posted a worsening pre-tax loss of $95.5m in the year to the end of June, compared with a loss of $74.1m in 2024.

Sales fell 8.7 per cent to $2 billion in 2025, while underlying earnings fell 13.2 per cent to $176.48m.

The near-200-year-old department store has downsized some of its stores in recent years and cut sections amid a pullback in discretionary spending, with its business sold for about $100m in 2022 just a decade after it was purchased for $2.1b.

In a trading update for the nine months to March, David Jones said sales jumped 3.6 per cent, while underlying earnings grew 325 per cent to $51.63m.

Chief executive Scott Fyfe said the results showed the impact and effectiveness of its $250m transformation program dubbed Vision2025+, which included store refurbishments, improved online offering, a new mobile app and loyalty scheme.

“The program delivered a comprehensive transformation across operations, customer experience, and our brand portfolio,” Mr Fyfe said in a statement.

“Key achievements included the reopening of all refurbished stores, the launch of a market-leading loyalty partnership program, the evolution of our e-commerce offering including our new shoppable app, the establishment of our retail media platform and the award-winning financial services credit card.”

Last year, national carrier Qantas revealed it would become the new credit card rewards partner of David Jones.

The rollout came just as Myer boss Olivia Wirth — the former head of Qantas Frequent Flyer who is credited with turning the airline’s loyalty program into a booming revenue generator — relaunched the retailer’s “market-leading” loyalty program later in a bid to fuel sales and unlock data to target shoppers.

An Anchorage spokesman said the company backed David Jones.

“We have successfully returned this icon to Australian hands, recapitalised the business with a $190m facility not due to expire until late 2028, and executed a transformation that many said was impossible,” he said.

“David Jones is now debt-lean, operationally efficient, and remains the undisputed home of premium retail in Australia.”