JB Hi-Fi posts lower sales, citing challenging trading environment

(Source: JB Hi-Fi)

Electronics and appliance retailer JB Hi-Fi reported total sales of $5.16 billion for the six months ended December 31, down from $5.3 billion year on year.

The company’s net profit after tax was $264.3 million compared to last year’s $330 million.

Sales in Australia were flat, up only 0.7 per cent to $3.62 billion, with comparable sales up 0.1 per cent. EBIT dropped 13.7 per cent to $294.6 million.

Online sales increased by 0.8 per cent to $543.1 million and accounted for 15 per cent of total sales. 

The key growth categories in the market were mobile phones, games hardware, small appliances, whitegoods and services. 

JB Hi-Fi New Zealand’s sales rose 5.1 per cent to $158.6 million, with comparable sales down 1.2 per cent. EBIT was down $5.4 million to negative 0.37 million.

Sales of The Good Guys plummeted 9.9 per cent to $1.39 billion, with comparable sales down 9.9 per cent.

JB Hi-Fi Group CEO Terry Smart said the firm faced a “more challenging” trading environment marked by heightened competitive activity and increased on-floor discounting.

“Our focus remained on maximising customer demand through delivering consistently high levels of customer service and driving best value for our customers.” 

Further reading: Consumer class action launched against JB Hi-Fi over ‘junk’ warranties

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