JB Hi-Fi has reported a 42.3% increase in sales, notching record heights of $5.6 billion. Profits have jumped 36.5% to $207.7 million.
The announcement is the first full year financial earnings report, since the acquisition of formerly privately owned, The Good Guys, in November 2016,.
Group Chief Executive Richard Murray said 2017 has been an exciting year, having delivered record sales and earnings [both on statutory and underlying basis]. The Group said they have been pleased with the performance of The Good Guys, and are excited about its future opportunities.
Within JB Hi-Fi Australia, total sales grew by 10.9% to $4.15 billion, with comparable sales up 8.6%.
Key growth sectors were Communications, Audio, Cameras, Accessories, Computers and Home Appliances.
Total operating costs were in line with management expectations.
Online sales for FY2017 within JB Hi-Fi Australia grew 38.4%, marking 3.8% of total sales. The results come on the back of the company’s strategy to continually grow its digital assets.
JB Hi-Fi Solutions has continued to grow, and remains on track to deliver longer term sales targets of around $500 million per annum.
Total sales for The Good Guys have climbed 0.2% to $1.26 billion, whilst comparable sales have slipped 1.3%, since its ownership under JB Hi-Fi.
The Good Guys’ earnings for the period hit $46.4 million, which was “pleasing” to the Group, and in line with the pcp.
Online sales levels for The Good Guys have notched a higher portion of total sales compared to JB Hi-Fi Australia. It recorded online sales of 5.1% of total sales, versus 3.8% within JB Hi-Fi.
In contrast, JB Hi-Fi New Zealand emerges as the Group’s ‘problem child’. Group CEO Richard Murray states it is “disappointed with [its] recent financial performance”, but is finalising a two-year strategy to improve performance. Total sales for JB Hi-Fi New Zealand were down 0.3%, with comparable sales also down 8.8%.
Retail store expansion has continued within the Group, having opened ten new stores across the Group and closing two. The Group expects to open five more stores within FY2018.
The results come on the back of an otherwise tough month in July, with total sales growth of 8.8% which is significantly down from 13.4% in July 2016. Comparable sales growth hit 5.8%, also down from 9.5% in July 2016.