JB Hi-Fi flags sales drop after record year
JB Hi-Fi says sales weakened in July after reporting a 4.3 per cent jump in revenue last year to $9.63 billion – higher than some estimates. Annual earnings and profits fell, leading to a lower dividend.
The $5.6 billion retailer of TVs, consoles, computers and mobile phones and whitegoods posted earnings before interest and tax of $769 million, down 3.2 per cent. Net profit fell 3.7 per cent to $479.9 million in the 12 months to June 30.
JB Hi-Fi boss Terry Smart says there is increased volatility in sales in July. Eamon Gallagher
At JB Hi-Fi Australia total sales gained 5.6 per cent to $6.55 billion, with comparable sales up 4.8 per cent supported by communications, audio, accessories, games hardware and services while there was a decline in the movies category. Online sales fell by 20.9 per cent to $940 million as shoppers went back to stores.
“We are pleased to report record sales and earnings per share for FY23. In a challenging retail environment, we remained top of mind for shoppers and grew our market share by continuing to drive our value offering, leveraging the strength of our multichannel offer and maintaining our high levels of customer service,” chief executive Terry Smart said.
Mr Smart flagged that July total sales for JB HI-FI Australia were 1.8 per cent lower, with comparable sales growth falling 2.9 per cent compared with strong growth a year ago.
Sales growth for The Good Guys was 12 per cent lower in July with comparable sales growth falling the same amount.
Analysts are widely expecting weaker results for retail companies this reporting season.
The final dividend for the 2023 financial year of $1.15 per share fully franked, was down 38¢ per share. It will be paid on September 8. The total dividend
Read more on afr.com
