JB Hi-Fi Group has reported a 7.3% increase in sales and an 8.1% lift in earnings before interest and tax, in what is being seen as an exceptional result given current market conditions, with newly acquired premium appliance retailer e&s the standout performer, delivering a 56.8% jump in sales and a 71.8% lift in gross profits.

Group revenues climbed from $5.6 billion to $6.085 billion for the six months to 31 December 2025, while net profit after tax rose 7.1% to $305.8M.

JB Hi-Fi Australia

At the core JB Hi-Fi Australia business, sales increased 6.3% to $4.12 billion, with comparable sales up 5.0%, driven by continued customer demand for technology and consumer electronics.

Backed by heavy promotional programs, key growth categories were mobile phones, small appliances, games, computers, wearables and fitness.

Online sales rose 11.2% to $759.0 million, now representing 18.4% of total sales, up from 17.6% in the prior corresponding period.

Gross profit increased 6.9% to $904.5 million, with gross margin up 11 basis points to 21.95%, driven by improvements in key product categories.

New Zealand Surges

JB Hi-Fi New Zealand was another strong performer, with sales up 32.6% to $268.6M and gross profit climbing to $45.8M from $34.5M.

The Good Guys

At The Good Guys, total sales increased 4.1% to $1.58 billion, with comparable sales up 4.0%, driven by continued customer demand for home appliances and supported by well-executed Black Friday and Boxing Day promotional periods.

e&s Delivers

Total sales at e&s for the six months to 31 December 2025 were $144.8 million. The prior half included only four months of consolidated sales, lifting statutory growth to 56.8%.

Gross profit was $43.4 million with gross margin at 29.96%, up 261 basis points. Cost of doing business was 25.26%, up 283 basis points, driven by investment in new stores.

In the commercial division, EBIT was $1.7 million, in line with the Group’s expectations, as the business invests in new strategic initiatives.

The 2026 Picture: Strong Numbers, Soft Share Price

The result underlines a growing disconnect between JB Hi-Fi’s operational performance and its market valuation through 2026.

Alongside the half-year numbers, the Group lifted its dividend payout ratio from the previous 65% to a range of 70% to 80% of NPAT from FY26, with the half-year payout landing at 75% of net profit, a signal that management sees fewer high-return growth options ahead and is choosing to return more cash to shareholders.

The latest results has left egg on the face of UBS analysts Shaun Cousins, James Meares and Zack Pontey who claimed three weeks ago that the the impact of heightened competition on JB Hi-Fi was likely already being felt with the pair tipping problems competing with Officeworks.

“JBH result (due August 17, 2026) is expected to show the negative impact of heightened competition indicated at the 3Q26 sales update,” the analysts wrote.

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