JB Hi-Fi Online Sales Up 78.1% but Warns of Lockdown Headwinds

Ally Feiam By Ally Feiam | 20 Jul 2021

JB Hi-Fi is smashing expectations out of the park, reporting a two-year increase in profits. But the retailer is warning its investors of a few disruptions in July as multiple states lockdown. 

The multichannel retailer reported an increase of 12.6 percent for Total Sales to $8.9 billion, with continued customer demand for consumer electronics and home appliances. The Group is reporting an increased and consistent level of growth YoY, despite the ‘cycling of elevated sales growth last year’, the company read.

The retailer has also reported a 78.1 percent increase in its online channels, with e-commerce now representing 11.9 percent of total sales. Its EBIT increased by 53.8 percent compared to the previous FY to $743.2 million and its NPAT is up 67.4 percent $506.1 million, compared to $302.3 million reported in FY20.

Despite this consistent increase in sales across JB Hi-Fi, its New Zeland business and the Good Guys, the Group is warning investors that the lockdown measures in Greater Sydney and Victoria may impact the July figures moving forward. Gross margins have been ‘well-managed’ by the company, with strong margins across all businesses. A combination of disciplined cost control, strong sales growth and the improvement in gross margins have driven ‘significant’ operating leverage, the business shared.

“We are pleased to report record sales and earnings for FY21,” said Richard Murray, CEO of JB Hi-Fi. “Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both in-store and online.” Murray offered his thanks to the 13,000 staff members of the business. “As I have said before, our team members are our number one asset and our most important competitive advantage; their dedication and deep product knowledge continue to delight our customers every day.”

At the time of writing, JB Hi-Fi’s share prices have increased 2.62 percent to $48.98 a share. Its YTD share prices have dropped -1.8 percent. The full results for JB Hi-Fi will be released on August 16 2021.

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