JB Hi-Fi predicts record year, though lockdown hurts fourth quarter

Experts discuss JB Hi-Fi's strong half-year financial performance. Bigstock
Experts discuss JB Hi-Fi’s strong half-year financial performance. Bigstock

Electronics retailer JB Hi-Fi will deliver record sales and earnings growth for FY21, according to preliminary results released to shareholders on Tuesday.

According to the business, sales grew 12.6 per cent over the course of the year to $8.9 billion, while earnings grew 53.8 per cent to $743 million and net profit reached $506 million – a 67.4 per cent growth on a year prior.

Outgoing JB Hi-Fi chief executive Richard Murray, who will jump ship to lead Premier Investments in August, put the group’s success down to its continued focus on the customer, as well as ongoing investments in its online business and supply chain.

“[This has] enabled us to seamlessly meet our customers’ increased demand both instore and online,” Murray said.

“I’d like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I’ve said before, our team members are our number one asset and our most important competitive advantage.”

During the period between April 1 and June 30, however, the group’s Australian businesses struggled with varying lockdowns around the country.

JB Hi-Fi Australia has seen sales drop 7.8 per cent during the fourth quarter so far, while The Good Guys’ sales fell only 1.5 per cent.

JB Hi-Fi New Zealand, however, saw sales grow 46.9 per cent for the same period, cycling out the impact of last year’s Covid-19 lockdown in the country.

All three segments saw growth on a two-year timescale.

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