JB Hi-Fi beats expectations: $5.16B in Sales, 6mth returns 23%

  • JB Hi-Fi defies expectations with first-half sales of $5.16 billion, outperforming forecasts despite a 2.2% top-line decline
  • JB Hi-Fi stock price up 23 per cent in the last 6 months
  • Despite a nearly 20% dip in interim net profit, JB Hi-Fi emphasizes commitment to maintaining a positive trajectory, focusing on customer service and value
  • JBH last traded at $59.26 at 11:57am AEDT

In a retail landscape marked by challenges, JB Hi-Fi (JBH) has reported first-half sales of $5.16 billion, outperforming forecasts and experiencing a smaller-than-expected top-line decline of 2.2 per cent.

“We are pleased with our performance as we cycled the elevated customer demand in the prior year,” JB chief Terry Smart said.

“Our focus remained on maximising customer demand through delivering consistently high levels of customer service.”

While Smart described the current retail environment as “challenging,” JB stocks are up nearly 5 per cent in the second hour of trade.

Smart also emphasised the need for resilience in the face of economic headwinds. While the result may have its shortfalls, it’s not as bad as what punters (and bankers) were expecting.

This follows strong results from Cettire and Nick Scali last week, implying that the Australian consumer continues to defies all odds and remains comfortable.

JB Hi-Fi Australia saw a 2.5 per cent growth in January sales, with comparable sales increasing by 1.7 per cent.

A general decline in smartphone, PC, and tablet demand is likely part of the reason why the company recorded a -2.2 per cent dip at its top line.

EBIT in the Australian electronics business also fell by 13.7 per cent to $294.6 million.

Interim net profit took a dip, falling nearly 20 per cent to $264.3 million, continuing to reflect the broader challenges faced by the retail sector.

The company faced challenges with higher discounting that impacted gross margins, resulting in an 84 basis points decrease to 22 per cent.

While the business encountered a few hurdles related to inventory availability over the past 12 to 18 months, Smart assured that the situation had improved.

Most likely to attract negative sentiment is that costs of doing business at JB Hi-Fi surged by nearly 12 per cent. But in absolute terms, they grew by 5.2 per cent, helping the company manage inflationary pressures.n.

Meanwhile, across the ditch, JB Hi-Fi New Zealand experienced an impressive 8.2 per cent growth. However, that was met with a turnover at The Good Guys dipping by 2.2 per cent last month.

Despite headwinds, JB Hi-Fi New Zealand saw a sales increase of 5.1 per cent to $NZ168.7 million, while sales at The Good Guys fell by 9.9 per cent to $1.39 billion, with comparable sales down by the same percentage.

The board declared an unchanged interim dividend of $1.58, fully franked and payable on March 8, marking a 39 cent decrease compared to the previous year.

JB Hi-Fi has also been trading up 23 per cent in the last 6 months.

JBH last traded at $59.66 at 10:55am AEDT.

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