Money JB Hi-Fi has beaten the retail crunch again to post record sales

12:26  13 february  2018
12:26  13 february  2018 Source:   Business Insider Australia

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Sales of smartphones, games, drones and computers helped consumer electronics chain JB Hi - Fi to record revenue in the first half, up 41% to .69 billion, putting it ahead of its own estimates. However, JB HI - FI stores had sales growth of 6.9% in January with comparable sales up 4.5%.

Consumer electronics retailer JB Hi - Fi has again defied the retail slowdown, posting a 13.2% rise in full year net profit of 2.4 million as revenue jumped 42% to a record .62 billion.

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Sales of smartphones, games, drones and computers helped consumer electronics chain JB Hi-Fi to record revenue in the first half, up 41% to $3.69 billion, putting it ahead of its own estimates.

Statutory profit after tax was up 37.4% to $151.7 million.

CEO Richard Murray says it was a strong result for the JB HI-FI business in Australia, particularly through the important November and December periods.

"We are pleased with the progress we have made at The Good Guys and are confident about the future opportunities," he says.

Key growth categories were the communications, computers, audio, drones and games hardware.

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JB Hi - Fi is a beacon of sales records in a troubled retailing sector with a string of players going into administration or liquidation. Last week fashion clothing brands Herringbone and Rhodes & Beckett went into voluntary administration.

Consumer electronics retailer JB Hi - Fi has again defied the retail slowdown, posting a 13.2% rise

Online sales grew 40.6% to $119.3 million or 4.8% of total sales.

Other bricks and mortar retailers, hit by increasing digital competition and subdued consumer sentiment, have reported weak trading for Christmas and New Year.

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JB Hi - Fi shrugs off the retail crunch to post record sales of Consumer electronics retailer JB Hi - Fi has again defied the retail slowdown, posting a 13.2% rise in full year net profit of 2.4 million as revenue jumped 42% to a

JB Hi - Fi shrugs off the retail crunch to post record sales of Consumer electronics retailer JB Hi - Fi has again defied the retail slowdown, posting a 13.2% rise www.businessinsider.com/…i-shrugs-off- the - retail

However, JB HI-FI stores had sales growth of 6.9% in January with comparable sales up 4.5%. Sales for The Good Guys -- the whitegoods retailer JB HI-FI acquired for $870 million in November, 2016 -- was down 3.5% with comparable sales growth of -4.7%.

The company today declared a dividend of 86 cents, up 19.4%.

Seven new JB HI-FI stores were opened in Australia and one JB HI-FI store was closed in New Zealand during the half year to December. Two new The Good Guys stores were opened. The company now has 311 stores in Australia and New Zealand.

For the full year, the company expects total sales to be about $6.85 billion, with $4.75 billion from JB HI-FI and $2.1 billion from The Good Guys.

Group profit will be between $235 million and $240 million, an increase of 13.1% to 15.5%.

The 2018 half year to December half-year results:

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Wesfarmers writes down Target by $300 million .
Wesframers has written down the value its discount retail chain Target by $306 million after lower than expected sales for the first-half of the 2018 financial year. The impairment will be applied against the brand name ($238 million), remaining goodwill of $47 million and property and equipment ($21 million).“The impairment of Target reflects difficult trading conditions in an increasingly competitive market,” says Wesfarmers Managing Director Rob Scott.“Target’s earnings have stabilised and the business will continue to leverage the Department Stores structure to support its future performance.

Source: http://au.pressfrom.com/news/money/-55183-jb-hi-fi-has-beaten-the-retail-crunch-again-to-post-record-sales/

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