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BREAKING NEWS: JB Hi-Fi Sales Wobble But Record Results Over 2019

JB Hi-Fi has issued a stark warning claiming that sales have suffered over the first month of the new financial year. Sales at The Good Guys are down 1.5 per cent, while sales at JB Hi-Fi have fallen 7.8 per cent.

The downfall was expected by the industry as CE and appliance retailers come under pressure from chip shortages and rising freight costs coupled with shipping issues.

Management said sales from April to the end of June had continued to be strong but were still unable to match the exceptional sales growth reported last year through the advent of COVID-19.

Revenues rose 21.2% for the year compared to COVID-free 2019. Sales at The Good Guys were up 28.3 per cent on 2019.

In a heads up for the year, CFO Nick Wells revealed that unaudited financials showed revenue at the CE retailer grew 12.6 per cent for the year to $8.9 billion, and net profit after tax soared 67.4 per cent to $506.1 million. Online sales for the retailer also boomed 78 per cent, making up $1.1 billion in revenue, or 11.9 per cent of total sales.

JB Hi-Fi has been one of the biggest beneficiaries of the pandemic, with stimulus payments and working from home needs driving sales across the company’s range of home appliances, laptops and computer monitors.

These results are above analyst expectations for the business, with outgoing chief executive Richard Murray attributing them to strong cost management and improvements in gross margins.

“We are pleased to report record sales and earnings for FY21. Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both instore and online,” he said.

“I would like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I have said before, our team members are our number one asset and our most important competitive advantage; their dedication and deep product knowledge continue to delight our customers every day.”

The business warned that during July sales were seeing “some disruption and variability” due to various state-based COVID restrictions, most notably the lockdowns in Sydney and Melbourne due to the difficult-to-control Delta variant of the virus.

 

More to Follow.

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