Despite a challenging few months, JB Hi-Fi has experienced a 'pleasing result' in its FY20 results, which were announced this morning.
JB Hi-Fi has released its FY20 results, with total sales increasing by 11.6 percent to $7.92 billion.
The Aussie retailers’ net profits have also soared in the last 12 months, with an increase of 33.2 percent, reaching $302.3 million. This comes after the Group predicted an increase of 6.1 percent to 8.1 percent amid the pandemic and its unprecedented outcomes.
As customers transitioned from the office to working from home during March, sales in Australia accelerated. In contrast, sales from March to April in New Zealand were impacted by the closure of stores across the country.
As a result of the pandemic, JB Hi-Fi’s operations were ‘affected significantly’, but its overall online sales grew by 48.8 percent to $597.5 million, with bolstered growth during the final quarter of the FY.
“It is a very pleasing result in what has been a most challenging time,” said Richard Murray, the CEO of JB Hi-Fi. “Customers are changing their spending priorities, working and learning from home, but also we have available cash to spend as we’re not spending it on travel and other things. We seem to be seeing the benefits of that.”
Total online sales for the Group grew by 56.6 percent, compared to 23 percent in 2019. In terms of total sales, online has accounted for 7.6 percent for The Group, which accounted for 5.5 percent the previous year.
There was ‘significant acceleration’ for online sales in the final quarter of FY20, with a growth of 155.2 percent. The company’s ability to scale its online offer helped bolster this growth and create a strong platform for its customers.
The Good Guys have also experienced an increase in sales in the last 12 months, growing 11.2 percent in total sales to $2.39 billion.
Online sales have grown exponentially, increasing by 33 percent to $174.2 million -it represents 7.3 percent of total sales, compared to 6.1 percent in the previous year.
The final quarter of FY20 saw the most significant increase in online sales, growing 91.3 percent. The e-commerce sales were partially offset by a decline in its third-party marketplace sales, the report explained. Overall, its Gross Profits have increased by 10.7 percent, reaching $490.2 million in FY20.
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