JB Hi-Fi sees NZ sales fall

JB Hi-Fi Nabs”Record” HY18 Results, Sales Soar 41%, Profit Up 21%

JB Hi-Fi Must Be Still Selling A Lot Of Games And Consoles

JB Hi-Fi said half-year total sales rose 41 percent to A$3.69 billion, helped by strong audio device and drone sales in Australia.

As for its earnings before interest and tax (EBIT) it bolstered over the period, rising by 25 per cent or by $45 million rising to $226 million.

The board declared a fully-franked interim dividend of 86 Australian cents per share, payable on March 9 with a February 23 record date.

Sales at JB Hi-Fi Australian stores grew on a year ago by 10.8% which was driven by the video games industry as well as computers, audio and drones.

It also says online sales grew 40.6% to $119.3 million (4.8% of total sales), also reporting that its solutions business achieved double-digit sales growth, remaining on track to deliver on the longer term aspirational sales target of approximately $500 million per annum.

The discount retailer signalled the shift for the New Zealand division previous year, taking an A$15.8 million impairment charge on the business after reviewing the unit and deciding on a way to revive sales and fatten margins.

Retail expert Chris Wilkinson of First Retail NZ said competition was fierce in the New Zealand appliance market, with Noel Leeming, Harvey Norman and Smiths City leading the way, alongside some strong regional players.

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It also says its New Zealand business suffered from a closure impact of NZD 4.6 million, after the closure of one store and the scrapping of its whitegoods offering in NZ.

On these results, JB's Australian segment is continuing to perform strongly, though the same can't be said of The Good Guys and the New Zealand business.

Concerning future outlook, the retailer expects full-year net profit to be between $235 million - $240 million.

The total sales for The Good Guys alone was $1.1 billion for the first half.

Following on from the acquisition of The Good Guys, total group sales are forecast to be around $6.85 billion.

The "record" results mark another milestone for JB Hi-Fi, who recently nabbed a place on Deloitte's list of the world's top 250 retailers.

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