After a solid 2024 JB Hi Fi has kicked off 2025 by delivering 7.4% sales growth in January Vs 2.4% growth in the prior year, sales in at The Good Guys was equally impressive with Group CEO Terry Smart telling ChannelNews that he is confident where the Company is currently at.
The JB Hi-Fi earnings call started with the normal financial questions. He was then asked ‘How far could the robot vacuum boom have to run, given penetration remains low at somewhere between 10 per cent and 15 per cent? Smart said the trend was real, and while JB Hi-Fi does not have firm forecasts, it’s merchandising the gadgets heavily and wants to be known as the first place consumers turn to when they’re ready to buy.
He told ChannelNews that one of the big earners for the group was smartphones and that her expected the demand for new smartphones to continue.
As for their recent acquisition of Melbourne based retailer E&S, Smart said that the Group “At this stage” are only planning to expand in Victoria with the integration of the specialist premium appliance retailer into JB Hi Fi’s back end reporting and management systems, taking priority as they work out the future for the group.
“We currently have several locations targeted in Victoria” he said.
Also, a priority for the retail group is the updating of The Good Guys web site to the Shopify system which is used by JB Hi Fi.
In 2024 online sales at The Good Guys increased 8.9% to $233.3M representing 15.4% of total sales.
Smart is confident that that the upgrade will deliver further growth this year.
Currently The Good Guys is benefiting from the demand for ‘replacement’ appliance.
Smart is also looking for further growth in New Zealand where the Company is planning to open five additional stores.
He claims that the expansion into regional areas is leading to growth in New Zealand with share coming from competitors including Harvey Norman and Noel Leeming.
In their latest filings JB Hi Fi New Zealand sales increased by 20% to $NZ202.5m ($A182.25m) as earnings returned to profitability of $NZ2.2m, up $NZ2.7m.
Earlier today JB Hi-Fi shares fell to $98.66 initially surging 5.5% to a record high of $108.08 with profit takers coming in to affect the stock.
Shares hard soared 60 per cent since the FY24 results six months ago.
