Striking an out-of-court settlement on the celebrated sexual harassment case against David Jones Ltd was only appropriate, according to the luxury retailer.

David Jones chair Robert Savage said on Friday that the high-profile courtroom drama had attracted too much of unsolicited attention and became a major disruption on the company's financial focus for the current fiscal year.

Savage told David Jones shareholders attending the retailer's annual meeting in Sydney that settling the case with former company publicist Kristy Fraser-Kirk was the right thing to do if only to do away with the unwanted distraction.

Fraser-Kirk sued the company and its former chief executive, Mark McInnes, for alleged sexual misconduct by her former boss and the subsequent inaction by David Jones officials when she reported the incident.

The controversial cases was heard for weeks and the drama only ended when David Jones initiated a settlement and offered Fraser-Kirk $850,000 to drop the case against the company, resulting to a deal that effectively ended the $37 million claim then being pushed by the litigant.

McInnes reportedly tossed his own share on the settlement amount, which was confirmed by the David Jones chairman, who also mused "we are pleased that all parties are able to heal, learn, rebuild and move on."

David Jones said that the settlement initiative lifted considerable burden on the company and preserved its interests and that of its shareholders and employees and most importantly, directed away further attack on its brand name.

The retailer's action to resolve the crisis, according to Savage, was designed to save David Jones from unnecessary troubles arising from the lawsuit as he assured shareholders that the company is working hard to prevent the occurrence of a similar incident.

David Jones chief executive Paul Zahra also addressed the meeting though he veered away from discussing the company's financial guidance and opted instead in assuring shareholders that the retailer is all prepped up for the busy activities of the Christmas shopping season.