JB Hi Fi Shows Dick Smith How CE Retailing Should Be Run
Chief executive officer Richard Murray told shareholders the electronics retailer achieved a lift in total sales of 5.3 per cent in the first quarter, while comparable sales were up 3.7 per cent.
Sales are set to be $3.85 billion.
“We expect the market to remain competitive as retailers drive for market share in the lead up to Christmas,” he said.
In the year ahead, JB Hi-Fi is expecting to open up to 8 new stores, convert up to 16 existing stores to JB Hi-Fi Home and introduce small appliances into 22 existing stores.
Full-year capital expenditure is seen in the range of $50 million to $55m.
Gross margin improved 16 basis points to 21.9% driven by a combination of sales mix and improved buying terms CEO Richard Murray said.
A key benefit for JB Hi Fi is their low operating cost. At 15.3%, this continues to be a competitive advantage and remains lower than our major listed competitors.
At the end of FY15 JB Hi Fi operated from 187 stores in Australia and New Zealand, with five new stores opened during the year.
As at 30 June 2015 the Company had managed to open 43 JB HI-FI HOME stores and are currently targeting a total of 75 JB HI-FI
HOME stores across Australia and New Zealand.
Online sales grew 16.9% in FY15, and represent approximately 2.4% of total FY15 sales. The JB HI-FI websites remain a key point of contact for JB Hi Fi customers with an average of 1.2
million unique visitations per week in FY15.
Currently the Company is expanding their digital marketing and web site operations to meet demand for increased traffic.