JB Hi Fi Shares Surge 8% After Sales Update
JB Hi-Fi shares have surged over 8% today after the Company announced that they have lifted total sales growth from 4.7 per cent, up 5.3 per cent over the prior corresponding period.
!2 months ago, their shares were trading at $21.00 today they surged 8.43% and at midday today they were trading at $37.020.
Sales growth at The Good Guys was minus 0.5%.
Speaking to ChannelNews Joint CEO Richard Murray said “A big contributor during the last quarter was telco and communications. we have good growth with audio and after our visual clearance earlier this year we are now seeing good growth for TV’s”.
This comes as several brands claim that they are seeing major margin erosion in the TV market due in part to competition caused by the launch of a cheap range of Samsung TV’s.
A big contributor has been the success of the Ffacon range of TV’s which since they launched to replace the Soniq range have witnessed strong growth with the Company tipped to shift 600,000 units
Also contributing to JB Hi Fi’s surge in sales is record low interest rates however Murray did not attribute the stronger sales momentum to stimulus measures aimed at boosting consumer spending.
“The core of our proposition has always been, and will always remain, our unwavering focus on our customer,” he said.
Same-store sales in JB Hi-Fi’s Australian stores rose 3.7 per cent in the September quarter, the strongest growth for more than a year, after rising 3.2 per cent in July and by 2.8 per cent in the June-half of 2019.
In New Zealand, the group saw same-store sales rise 3.8 per cent in the first quarter after falling 0.3 per cent in July and rising 1.9 per cent in the June quarter.
Murray reaffirmed full-year sales guidance after demand picked up in August and September. AAP
Momentum also improved at The Good Guys, despite sluggish demand for appliances, with same-store sales down 1.8 per cent in the first quarter after falling 3.4 per cent in July.
Mr Murray reaffirmed guidance for total sales to grow 2.2 per cent to about $7.25 billion this year – $4.84 billion from JB Hi-Fi’s Australian stores, $240 million from New Zealand and $2.18 billion from The Good Guys.
This follows a 3.5 per cent increase in sales to $7.09 billion and a 7.1 per cent rise in net profit to $249.8 in 2019.
Mr Murray gave no profit guidance but said the company was confident it would be able to maintain market leadership.
“In JB Hi-Fi and The Good Guys, we believe we have two unique and relevant brands, particularly in the eyes of our customers. With a customer focused business model built on a diverse product offering, deep relationships with our suppliers, a high quality multi- channel offer and exceptional customer service, we are confident we will maintain our market leading competitive position,” he said.