JB Hi-Fi Records Slight First-Half Profit Dip

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JB Hi-Fi has seen its profit dip slightly in the 2015 first half, however is confident in its momentum leading into the second half on the back of positive January sales results.JB Hi-Fi has reported first-half net profit after tax of $88.5 million, down from $90.3 million year-on-year, from sales of $1.97 billion, down from $1.94 billion.

Total sales growth for the first half was 1.3 per cent, with comparable sales down 0.7 per cent.

JB Hi-Fi CEO Richard Murray labelled it “a pleasing result”, noting the impact of “the combined headwinds of a challenging first quarter sales result and the cycling of both digital switchover in visual and the launch of new gaming consoles in the second quarter last financial year”.

“We executed the key Christmas trading period well, maintaining our price leadership and keeping costs well controlled while investing for future growth in HOME, commercial and online,” Murray commented.

JB Hi-Fi continues to expand its JB Hi-Fi HOME appliance store network, opening three new stores and converting 14 existing stores during the half, bringing its total number of HOME stores to 39 (out of a total of 185 stores) as at December 31, 2014.

JB Hi-Fi anticipates opening another two new HOME stores and converting a further 11 existing stores by the end of the financial year, taking its total number of HOME stores to 52.

JB Hi-Fi has previously advised its sees the potential for approximately 75 HOME stores by the end of the 2016 financial year.

Murray noted the growth of the connected home market, stating JB Hi-Fi is “positioning its model to be the consumer’s destination for this next technology evolution”.

“As such, we continue to believe that our expansion into appliances is a critical enabler to our success in the connected home,” Murray stated.

JB Hi-Fi additionally saw online sales grow during the period, up 13.5 per cent, representing approximately 2.5 per cent of total sales, with online sales in December up 20.6 per cent on the previous corresponding period.

Meanwhile, total consolidated sales growth in January was 8.9 per cent and comparable sales growth 7 per cent, while total consolidated sales growth in January year-to-date was 2.2 per cent and comparable sales growth 0.2 per cent.

“January sales and operational earnings are ahead of the same period last year and year-to-date comparable sales growth is now positive,” Murray commented. “This gives us confidence on our momentum for the second half.”

JB Hi-Fi expects total sales of circa $3.6 billion and net profit after tax to be in the range of $127-131 million for the 2015 full year.

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