JB Hi-Fi’s Online Sales Soar, Shares Take a Hit

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By Published On: August 15, 20220 Comments

It's been a good year for JB Hi-Fi, with online sales lifting more than 50 percent and total sales up YoY. But investors are seeing red.

Sales across the board are up for the retailer, with total sales increasing by 3.5 percent to $9.23 billion. Moreover, its online sales are also up, lifting by 52.8 percent to $1.63 billion. EBIT is up 6.9 percent to $794.6 million, and its NPAT is up 7.7 percent to $544.9 million.

“We are pleased to report record sales and earnings for FY22,” said Group CEO Terry Smart. “These results reinforce the enormous trust our customers have in our brands and the strength of our multichannel offer, which continues to provide customers with choice on how to shop.”

Even as all physical stores are open for the retailer, its online channel represents a large chunk of its overall sales. Online sales increased by 52.8 percent in FY22 to $1.56 billion – this represents 17.6 percent of total sales. In the second half, this dropped slightly as stores fully re-opened, shifting to 11.9 percent of total sales.

Sales in JB Hi-Fi Australia were up considerably compared to New Zealand, four percent to 0.3 percent, respectively. In Australia, there was an 11.7 percent increase in sales for the second half of the FY. This is driven by the demand for consumer electronics and home appliances, the company reported. Gross profit lifted by 4.7 percent to $1.39 billion. Its gross margin is also up, increasing by 15 bps to 22.4 percent. According to the Group, this was driven by improvements in key categories, more of which occurred in the second half of FY.

In New Zealand, JB Hi-Fi reported a 0.3 percent increase in total sales to NZD262.4 million. Comparable sales are up 0.3 percent. Sales in the second half of FY22 were up 6.3 percent, and online sales represented 16.5 percent of total sales, lifting by 56.7 percent to NZD43.3 million.

It was also a good year for The Good Guys, with sales increasing by 2.7 percent to $2.79 billion. In a similar vein to JB Hi-Fi, its online sales increased across the year, lifting by 53.7 percent to $397 million, representing 14.2 percent of total sales. ts gross profit increased by 6.8 percent to $649.9 million.

Despite these increases for the business, its shares have begun dipping into the red after opening. At the time of writing, JB Hi-Fi’s shares have dipped 1.22 percent to $45 a share. On a five-day basis, its shares are up 2.12 percent but remain 7.76 percent below its share prices at the same time in 2021.

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