JB Hi-Fi’s Online Sales Growth ‘Exceptional’ as Net Profits Soar

JB Hi-Fi’s FY21 total sales have increased by 12.6 percent YoY to $8.92 billion, with net profits soaring 67.4 percent to $506.1 million. With a bumper start to the financial year, these results are positive but significantly overshadowed by its performance in Q1 FY21.

Its FY21 gross profits have also increased by 13.4 percent to $1.33 billion, and its gross margin uplift of 22.2 percent was driven by ‘strong improvements’ in key categories.

The retailer has reported significant increases in its online sales, increasing 93 percent YoY to $780 million, up from 56.6 percent growth in FY20. Online now represents 13.1 percent of total sales, compared to 7.6 percent in FY20.

Driving factors of this increase have switched from buying home office equipment to consumers trying to keep themselves amused during ongoing restrictions and lockdowns. Topline growth is heightened with consumer demand for electronics and home appliance products, the retailer explained.

“It’s pleasing to see sales and earnings grow across all divisions in 2021,” shared Terry Smart, JB Hi-Fi Group CEO shared. “We’re seeing the impact of store closures in NSW and Victoria, but high involvement purchases such as cooking and higher ASP (average selling price) products tend to get delayed more than [lost], and when stores reopen you tend to pick a lot of those back up again.”

In New Zealand, JB Hi-Fi’s sales were up 17.4 percent to $261.6 million, with online sales soaring 35.6 percent to NZD27.6 million – representing 10.6 percent of total sales.

Similarly, The Good Guys reported an uplift in total sales of 13.7 percent to $2.7 billion with an overwhelming increase in its online sales of 48.5 percent, now representing g9.5 percent of total sales. Key growth includes refrigeration, laundry, floor care, portable appliances and visual goods. The retailer reported a fall of 8.6 percent in its Same-Store sales in July and August. However, these figures are 28.2 percent higher than the same period in 2019.

Despite these positive results, the Group’s shares are showing the opposite reaction. As of writing, JB HI-Fi’s shares have levelled out after a dip of one percent when results were released. The retail is now trading at $49.47 a share, up from $47.75 this morning.

Like this story? Click here to find out more about Power Retail E-Commerce Intelligence or here to sign-up for the free weekly Pulse Newsletter for more essential online retail content.