The Good Guys, who are seen as a family retailer of appliance and entertainment goods, is struggling as families cut back with replacement purchases driving sales according to their latest results.
In the last quarter and despite Black Friday and Boxing Day sales total sales decreased by 9.9% to $1.39 billion, with comparable sales down 9.9%.
Owners of the retailer JB Hi Fi management claim that sales have improved recently, with analysts tipping that the market in 2024 is set to be “tough” for both retailers and appliance brands – in particular European brands who are facing increased costs and longer periods to get to market following terrorist attacks on shipping in the Red Sea.
The brand’s dominant Home Appliance categories remained resilient, with the consumer electronics categories softer cycling elevated demand in the pcp.
Online sales declined by 2.3% to $192.7 million or 13.9% of total sales.
Gross profit was $325.0 million with gross margin up 16 bps to 23.4%, driven by sales mix that resulted from the resilience of the Home Appliance categories.
CODB was 13.6%, up 171 bps, and in absolute terms grew 3.1%, with disciplined cost control helping to manage inflationary cost pressures.
EBIT was down by 30.5% to $92.5 million with EBIT margin down 197 bps to 6.7%.
More to follow.
