JB Hi Fi has delivered sales growth of 4.3% to $9.63 billion in the last financial year, gross profit increased by 6.7% to $1.48 billion, with gross margin up 23 bps to 22.6%, driven by what JB Hi Fi is describing as a positive sales mix.

The retailer claims sales weakened in July after reporting a 4.3 per cent jump in revenue for the year ending July 31st.

Cost of doing business was 12.1%, up 68 bps, but remained below pre Covid FY19, driven by continued disciplined cost control.

As a result of “heightened uncertainty” in the CE and appliance market JB Hi Fi has chosen to slash its final dividend by almost one third after years of bloated dividends.

At June 30, JB Hi-Fi stores totalled 216, while The Good Guys stores reached 106.

The business’s low CODB remains a competitive advantage and is maintained through a continued focus on productivity, minimising unnecessary expenditure and leveraging scale. claims management.

The key growth categories were Communications, Audio, Accessories, Games Hardware and Services.

Online sales fell by 20.9% to $940 million or 14.4% of total sales.

Compared to pre Covid FY19, online sales were up 264.3%.

Overall sales when compared to pre COVID 2019 were up 35.7%.

Group CEO, Terry Smart said “We are pleased to report record sales and earnings per share for FY23. In a challenging retail environment, we remained top of mind for shoppers and grew our market share by continuing to drive our value offering, leveraging the strength of our multichannel offer and maintaining our high levels of customer service.”

At their New Zealand operation sales were up 11.3% to NZD292.1 million, with comparable sales up 11.3%. As compared to pre Covid FY19, total sales were up 23.6%.

Online sales declined by 25.7% to NZD32.1 million or 11.0% of total sales. As compared to pre Covid FY19, online sales were up 141.9%.

Gross profit increased by 2.4% to NZD46.7 million with gross margin down 140 bps to 16.0%, driven by price competitiveness in key categories and negative sales mix. CODB was 14.2%, up 142 bps but remained below pre Covid FY19, driven by continued disciplined cost control.

The Good Guys

Total sales increased by 0.8% to $2.81 billion, with comparable sales up 0.8%. As compared to pre Covid FY19, total sales were up 31.0%. The key growth categories were Refrigeration, Laundry, Floorcare, Personal Care and Audio. Online sales declined by 14.1% to $341.1 million or 12.1% of total sales. As compared to pre Covid FY19, online sales were up 160.5%.

Gross profit was $658.4 million with gross margin up 11 bps to 23.4%, driven by positive sales mix. CODB was 12.8%, up 104 bps, but remained below pre Covid FY19, driven by continued disciplined cost control.

EBIT was down by 11.8% to $213.0 million with EBIT margin down 108 bps to 7.6%. As compared to pre Covid FY19, EBIT remained strong (FY19 EBIT of $72.9 million with 3.4% EBIT margin).

Management reported that July sales are in line with the Group’s expectations cycling the elevated period from last year.

While total sales continue to be well above pre Covid July FY19, the Group has seen increased variability in category performance.

Group CEO, Terry Smart said “With the heightened uncertainty in the retail environment, both our brands remain well positioned to leverage their low-price market position as shoppers look to maximise value from their purchases. As we have continued to demonstrate, we will adapt and respond to the changing retail conditions to ensure we remain the number one destination for shoppers and grow our market share.”

Terry added “As always, we are thankful to our over 14,500 team members whose continued focus on delivering value and maintaining our high levels of customer service will ensure the long-term sustainability of the business.”