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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 AustralianMr 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.

The news follows the release of the Group’s record FY19 results yesterday, with its dividend payment beating consensus estimates.

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.

As previously reported, the South African-based owners of David Jones claim the local retail industry is in “recession” – contrasted by the remarks of Amazon Australia’s Country Manager.

JB Hi-Fi expects full-year sales for FY20 to notch $7.25 billion, up from $7.095 billion the year prior.

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