JB Hi Fi Grows 17% Online, “Mac Vs Lenovo” Drives PC Sales
According to JB Hi Fi CEO Richard Murray online sales of $85M represent 2.4% of overall sales. More than 1.2 consumers visit the JB Hi Fi web site every week.
During an investor conference today Murray said that as of this coming Friday JB Hi Fi will start ranging the Apple watch at their Sydney Westfield store.
He said that the group is also expanding into private label accessories a move that will see the CE retailer range private label alongside branded fitness products which have been credited with delivering growth during the past year.
Talking about the PC sector Murray said that during the past six months “Computers was all about Apple Mac Vs Lenovo” he said that at the top end of the PC category that their move last year to range Lenovo alongside their Mac offering was paying off.
Shortly after JB Hi Fi announced their results the stock surged 10.86% rising to $21.74, against a benchmark index decline of 0.13 per cent.
Net profit for the year to June 30 came to $136.5 million, a 6.35 per cent increase on the previous year’s $128.4m The result is slightly ahead of JB Hi-Fi’s own forecast for net profit after tax between $127m and $131m.
Revenue from ordinary activities rose 4.83 per cent to $3.652 billion, from $3.484bn a year earlier. The retailer expects sales of around $3.85bn in fiscal 2016.
JB Hi-Fi has been seeking growth by opening stores that sell fridges, freezers and laundry and cooking appliances, in an attempt capture a bigger share of the $4.6 billion home-appliances market.
Chief executive Richard Murray said the group was pleased with its start to the financial year.
“July trading has been solid as we cycled a soft trading period in the prior year,” he said.
“Key growth categories included computers, telco and home appliances; whilst visual continued to be a challenge.”
Total consolidated sales growth in July was 7.6 per cent, while consolidated comparable sales growth in the month was 5.7 per cent, the retailer said.
“We have an aggressive store investment program including rolling out JB Hi-Fi Home, the continued rollout of small appliances to a number of existing stores and upgrades to a number of our stores,” Mr Murray said.
“This will position us well in the lead up to the important Christmas and New Year sales periods.”