JB Hi-Fi Credit Tax Cuts For Sales Boost
JB Hi-Fi Chief Executive, Richard Murray, has attributed recent government tax cuts for further boosting electronics sales – benefiting consumer confidence.
Speaking to The Australian, Mr Murray asserts it “does feel a more positive environment post the election.”
He adds it’s “possible” the Group’s recent sales surge was a mix of internal execution and a lift in consumer income from tax cuts.
Sales store sales for JB Hi-Fi climbed 3.2% in July, with like-for-like sales for the The Good Guys slipping 3.4% during the month.
Murray claims it’s likely JB Hi-Fi would benefit from tax cuts earlier than The Good Guys due to a lower average selling price and cheaper product range.
For the twelve months to June 30, net profit hit $249.8 million versus $233.2 million the year prior.
Total sales growth for FY19 notched 3.5%, with earnings per share up 7.1% to 217.4 cps.
“We are pleased to have delivered record sales and earnings, with JB Hi-Fi Australia, JB Hi-Fi New Zealand and The Good Guys all delivering sales and earnings growth,” said Murray yesterday.
Shares spikes more than 11% in early trade, closing 9.98% to $30.75.
Group stock has jumped more than 50% since the start of 2019.
The news contrasts flailing sales for other local retailers and a broader sluggish Australian retail landscape.
JB Hi-Fi expects full-year sales for FY20 to notch $7.25 billion, up from $7.095 billion the year prior.