David Jones (DJS) Shares – Company Profile

David Jones Limited is one of Australia’s largest retailers. Along with Myer, David Jones is one of the leading department store operators in Australia. The company’s shares are part of the ASX top 100 company with a market cap of around $2.5 billion.

DJS has been one of the best performing shares over the last few years, averaging around 25% return for shareholders every year since it was re-listed on the ASX in 2003.

The company has 36 stores across Australia, located in leading shopping strips and world-class shopping centres.

Mainly stores, but financial services a nice little earner

DJS operates in two business segments: department stores and financial services.

The department stores segment comprises of David Jones department stores, rack stores and corporate head office.

DJS’s subsidiaries include Aherns Holdings Pty Ltd, Ahern’s (Suburban) Pty Ltd, Akitin Pty Limited, Helland Close Pty Ltd, 299-307 Bourke Street Pty Ltd, David Jones Credit Pty Limited, David Jones Financial Services Limited, David Jones Insurance Pty Limited, David Jones Finance Pty Limited, David Jones (Adelaide) Pty Limited and Buckley & Nunn Pty Limited.

The financial services segment includes the alliance between the DJS and American Express.

Still growing, but the growing is slowing

In their most recent report, released in early February, David Jones announced a 2.3% increase in sales revenue for their first half (ending 23 January 2011) to 1.087 billion from $1.063 billion for the same time last year.

The company’s core customer base is ordinary Australians, so DJS should perform better at times that the Australian economy is doing well. The DJS share price will very often react to news about the Australian economy, such as employment numbers or consumer confidence.

The company’s major competitor is Myer, while discount retailers such as Target and Kmart can also be seen as competitors.

The company has been able to upgrade dividends since listing on the ASX in 2003 and remains a key stock in many leading investors’ portfolios.