Total sales at Australia’s 204 JB HI-FI stores grew by 9.9% for the sales period from 1st of January to 22nd of March 2020, with year-on-year sales growth of 8.8%.
The Good Guys, which is also part of the JB HI-FI Holdings Group, recorded total sales growth of 10.4%.
This sharp growth has been driven by consumers trying to get their hands on home office supplies, such as monitors and keyboards, as well as home entertainment goods, as more Australians work from home and stay in.
However, in the company’s COVID-19 impact update published on the ASX this morning, the company cautioned investors: “Whilst the Company continues to be pleased with its performance to date, there is an increasing level of uncertainty arising from COVID-19.”
As a result of the growing uncertainty stemming from COVID-19, JB HI-FI has withdrawn its previous FY20 sales and earnings guidance.
For now, JB HI-FI and the Good Guys are among the retailers staying open in NSW, though many other retailers have been told by the federal government to shut by midday today.
In its ASX update, JB HI-FI said it would be implementing new health safety measures at its stores, including additional intensive cleaning and social distancing practices in queues.
Interestingly, JB HI-FI’s 14 stores in New Zealand did not perform as well as its Australian counterparts over the last sales period. The New Zealand stores’ sales fell by 2%.
Despite the strong Australian sales results so far, investors appear to be nervous about the potential impacts of COVID-19. JB HI-FI’s share price was down 22.48% as of 10.40am today, while the ASX 200 had fallen by 6.45%.
Nevertheless, the JB HI-FI Group appears to remain confident overall, stating: “The Company’s balance sheet remains strong and the Company has significant headroom in its facilities and covenants.”
