January and February sales at JB Hi-Fi have started to moderate according to management after they reported a 14 per cent increase in earnings and an 8.6 per cent increase in sales to $5.28 billion for the six-month period ending in December. Online sales at the big CE retailer have fallen, as consumers returned to store shopping.
Sales at the The Good Guys increased by 7.3 per cent to $1.54 billion, with comparable sales up 7.3 per cent. Compared to pre-Covid HY20, total sales were up 34.6 per cent.
The key growth categories at TGG were Refrigeration, Laundry, Floorcare, Visual and Audio.
Online sales were down 21.5 per cent to $197.2 million or 12.8 per cent of total sales but were up 148.0 per cent as compared to pre-Covid HY20.
Gross profit increased by 10.3 per cent to $358.4 million with gross margin up 64 bps to 23.2 per cent, driven by strong improvements in key categories and positive sales mix. CODB was 11.9 per cent, up 45 bps. As compared to pre-Covid HY20, CODB was down 106 bps, driven by continued disciplined cost control.
Group CEO Terry Smart says, “While we are pleased with the January trading result, with sales continuing to be well above pre Covid January 2020, we have seen sales growth start to moderate from the elevated levels seen in the first half of FY23. 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.”
Smart said that the 2022 numbers were bolstered by elevated customer demand for consumer electronics and home appliances, and well-executed Black Friday and Boxing Day promotional periods.
He also claimed that a significant contributor was “normalised trading conditions” at the end of 2022 following two years of Covid-related disruptions.
“Our relentless focus on providing the best value and high levels of customer service every day, both in store and online, continue to resonate with our customers.”
Total sales increased by 9.1 per cent to $3.59 billion, with comparable sales up 8.5 per cent. As compared to pre Covid HY20, total sales were up 31.8 per cent.
The key growth categories were Communications, Audio, Accessories, Computers and Fitness.
Online sales declined 34.8 per cent to $537.3 million or 15.0 per cent of total sales but were up 214.6 per cent as compared to pre-Covid HY20.
Gross profit increased by 14.5 per cent to $820.0 million with gross margin up 108 bps to 22.8 per cent, driven by improvements in key product and service categories and positive sales mix.
Cost of doing business was 11.4 per cent, up 58bps.
Management claimed that the business’ low CODB remains a competitive advantage and is maintained through a continued focus on productivity, minimising unnecessary expenditure and leveraging scale.
EBIT was up 16.7 per cent to $341.3 million, with EBIT margin up 62 bps to 9.5 per cent.
At JB HI-FI New Zealand total sales were up 16.1 per cent to NZD$160.6 million, with comparable sales up 16.1 per cent. As compared to pre-Covid HY20, total sales were up 21.0 per cent.
Online sales in New Zealand declined 34.7 per cent to NZD$19.3 million or 12.0 per cent of total sales but were up 100.6 per cent as compared to pre-Covid HY20.
Gross profit increased by 7.0 per cent to NZD$5.9 million with gross margin down 137 bps to 16.1 per cent, driven by price competitiveness in key categories and negative sales mix.
CODB was 12.6 per cent, up 40 bps. As compared to pre-Covid HY20, CODB was down 46 bps, driven by continued disciplined cost control.
Sales at the The Good Guys increased by 7.3 per cent to $1.54 billion, with comparable sales up 7.3 per cent .Compared to pre-Covid HY20, total sales were up 34.6per cent.
The key growth categories were Refrigeration, Laundry, Floorcare, Visual and Audio.
Online sales were down 21.5 per cent to $197.2 million or 12.8 per cent of total sales, but were up 148.0 per cent as compared to pre-Covid HY20.
Gross profit increased by 10.3 per cent to $358.4 million with gross margin up 64 bps to 23.2 per cent, driven by strong improvements in key categories and positive sales mix. CODB was 11.9 per cent, up 45 bps. As compared to pre-Covid HY20, CODB was down 106 bps, driven by continued disciplined cost control.
The Group provides the following sales update, for the period:
1 January 2023 to 31 January 2023:
Total sales growth for JB HI-FI Australia was 2.5%
January 2022: 4.3%) with comparable sales growth of
1.5% (January 2022: 3.6%).
Total sales growth for JB HI-FI New Zealand was 20.0%
January 2022: -1.8%) with comparable sales growth of 20.0% (January 2022: -1.8%); and Total sales growth for The Good Guys was 0.0%
(January 2022: 2.5%) with comparable sales growth of 0.0% (January 2022: 1.9%).
