JB Hi-Fi posts record earnings, backed by online growth

Trans-Tasman electronics retailer JB Hi-Fi has reported record earnings backed by strong online growth in its full-year results.

The business says total sales grew 3.5 per cent to $9.23 billion while tax-paid profit rose 7.7 per cent to $544.9 million. E-commerce revenue grew 52.8 per cent to $1.63 billion, accounting for 17.6 per cent of all sales.

In Australia, sales remained relatively strong throughout the year however, ongoing customer demand for electronics and home appliances drove sales up by 11.7 per cent in the second half. Sales increased 4 per cent to $6.2 billion while online sales grew 52.3 per cent to $1.19 billion, or 19.2 per cent of sales.

In New Zealand, sales were up 0.3 per cent to $237.76 million of which online sales – up by 56.7 per cent –contributed $39.23 million or 16.5 per cent of all sales.

Sales by JB Hi-Fi’s The Good Guys business reached $2.79 billion (up 2.7 per cent) with online sales up by 53.7 per cent to $397 million, or 14.2 per cent of all sales.

Group CEO, Terry Smart, said the results “reinforce” the trust customers have in the retailer’s brands.

“As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers.

“Our ongoing strategy of providing customers with the best value and outstanding service every day will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.”

The group says it will continue to invest in its multichannel strategy across both online and supply chain channels, upgrade its website and expand delivery options for customers.

Meanwhile, the company has appointed Tim Edwards as its new MD of operations.

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