JB Hi-Fi reported a profit drop in H1, but its shares soared to a record high as the drop defied expectations of a stronger loss.
JB Hi-Fi has reported on its first half results for FY24. The results for the period from July to December 2023 showed total sales for the half totalled $5.2 billion, and profits were $264.3 million, down 19.9 percent year on year.
However, this 19.9 percent drop exceeded expectations of a larger drop and according to AFR, around 5 percent better than consensus expectations.
At $60 a share, JB Hi-Fi shares soared to a record high this past Monday.
JB Hi-Fi chief executive Terry Smart said considering the increasingly challenging trading environment, he is pleased with the results.
“We are pleased with our performance as we cycled the elevated customer demand in the prior year,” he said.
“As expected, we saw the trading environment become more challenging, marked by heightened competitive activity and increased on-floor discounting.
“Our focus remained on maximising customer demand through delivering consistently high levels of customer service and driving best value for our customers.”
The Group also provided a sales update for the month of January. The outlook is strong with total sales growth for JB Hi-Fi Australia at 2.5 percent and total sales growth for JB Hi-Fi New Zealand was 8.2 percent. The Good Guys sales have dropped 2.2 percent, but despite this, January sales are in line with the Group’s expectations.
“In a challenging retail environment, we continue to adapt and innovate to maximise the opportunities it gives us,” Group CEO, Terry Smart said.
“Our unwavering focus on delivering value for our customers by leveraging our established and proven low-price market position and providing exceptional customer service continues to ensure we remain top of mind for shoppers. This strategy not only ensures our continued relevance to our loyal existing customers but also drives the expansion of our market share.”