Sales slow for JB Hi-Fi in Q3

JB Hi-Fi has posted its Q3 results, and while remaining well above pre covid levels, the sales boom of the past couple years has come to a halt for the electronics retailer. With consumers dealing with inflation and economic pressures, sales on home goods are slowing right down.

The retailer didn’t share specifics, but in Australia, comparable sales for JB Hi-Fi were down 0.1 percent for the March quarter, with total sales up just 0.8 percent. The Good Guys is in a worse position with total and comparable sales down 3.8 percent YoY. Across the Tasman however, despite challenging conditions, comparable and total sales for JB Hi-Fi’s New Zealand arm increased by 10.8 percent as the group refreshed its store network.

Compared to pre-pandemic numbers, JB Hi-Fi sales in Australia are up by 38.8 percent on 2019 with the New Zealand arm of the business up 30.1 percent, and The Good Guys is up 22.4 percent on the same period in 2019.

“The Group is pleased with the Q3 FY23 trading result, with sales continuing to be well above pre Covid FY19,” read today’s trading update. “As anticipated, sales growth has started to moderate from the elevated levels seen in the first half of FY23, but the Group’s trusted value-based offerings have continued to resonate with our customers and grown market share.”

The financial year appeared off to a good start in Q1 with sales up nearly 15 percent YoY for JB HI-FI Australia and 12.3 percent for The Good Guys. In the first quarter JB HI-FI New Zealand reportedly grew 27.7 percent on the same period in 2022.  The second quarter showed signs of slowing with significantly less impressive growth, JB Hi-Fi saw just 5.6 percent growth in Australia for Q2, and 9.8 percent in New Zealand. The Good Guys had a less impressive quarter, growing just 3.3 percent on Q2 2022.

Presented in the Macquarie Australia Conference today in Sydney, the group doesn’t seem deterred by the results as it revealed focus areas for the remainder of the year and beyond including goals to expand its multichannel offering, improve supply chain, evolve its commercial business, create a long-term sustainable business, and further leverage its proposition that centres on value and service in an increasingly tough retail environment.

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