JB Hi-Fi sales, profits increase in December half

JB Hi-Fi CEO Terry Smart. (Source: Supplied)

Trans-Tasman electronics retailer JB Hi-Fi has reported record earnings in its December half as trading conditions normalise.

For the six months to December 31, the business reported an 8.6 per cent increase in sales to $5.28 billion driven by elevated customer demand as well as “well-executed” Black Friday and Cyber Monday promotional periods.

Earnings before income and taxes grew 14 per cent to $479.2 million while tax-paid profits rose 14. 6 per cent to $329.9 million.

Despite e-commerce driving last year’s full-year earnings growth, online sales declined sharply across the business during the latest half.

In Australia, group sales remained relatively strong, up 9.1 per cent to $3.59 billion while comparable sales grew 8.5 per cent.

Online sales fell 34.8 per cent to 537.3 million equating to 15 per cent of total sales.

In New Zealand, sales were up 16.1 per cent to A$146.63 million (NZ$160.6 million) although online sales fell by 34.7 per cent to A$17.62 million.

Sales at JB Hi-Fi’s The Good Guys appliance business increased 7.3 per cent to $1.54 billion (up 2.7 per cent) with online sales dipping by 21.5 per cent to $197.2 million.

Group CEO Terry Smart said the business is pleased with the results and added that sales growth is starting to “moderate” from an elevated level as seen in the first half.

“As we enter an uncertain period, our business is well placed with a proven ability to adapt to any changes in the retail environment and trusted value-based offerings that will continue to resonate with our customers and grow our market share.”

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