David Jones Shares March 18
David Jones Shares March 18
One of the best known Australian Shares is David Jones (DJS), a chain of premium department stores.
When looking at Australian shares, attention must be paid to how sensitive the stock is to a countrys economic growth.
As a retailer, DJS is highly leveraged to the economic cycle. Australia has emerged from the global recession relatively well, and its economy is on a growth path.
Economic growth means people are more likely to be spend money, which is good news for retailers like David Jones.
David Jones recently reported a 10.2% jump in 1H10 net profit to $100.5 million, and declared in interim dividend of 12 cents per share. Analysts had expected a profit of $101.1 million.
DJS cost of doing business fell slightly, and was a big factor behind the rise in its operating profit.
If the Australian economy continues to grow, it will be good news for Australian shares and good news for retailers like David Jones.
Want more share tips.