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Tag: JB

  • JB Hi-Fi New Zealand falters while group grows

    JB Hi-Fi New Zealand falters while group grows

    Electronics retailer JB Hi-Fi has seen shares jump 8.3 percent following a strong first-quarter showing, with total group sales growth of 4.7 percent and comparable sales growth of 3.7 percent.

    However, the business’ New Zealand arm didn’t reach the highs of first quarter FY19, with total and comparable sales growth of 3.8 percent compared to 4 percent total and 9.8 percent comparable in the prior corresponding period.

    The business reaffirmed it would reach its FY20 sales target of A$7.25 billion, including $240 million in New Zealand.

    “As we have said before, retailing is a dynamic and exciting industry and JB Hi-Fi and The Good Guys are market leaders in their respective sectors,” JB Hi-Fi Group chief executive Richard Murray said at the group’s AGM on Thursday.

    “In JB Hi-Fi and The Good Guys, we believe we have two unique and relevant brands, particularly in the eyes of our customers.

    “With a customer-focused business model built on a diverse product offering, deep relationships with our suppliers, a high-quality multichannel offer and exceptional customer service, we are confident we will maintain our market-leading competitive position.”

    The retail group experienced pressure from shareholder groups last week over the implementation of its remuneration report, which the Australian Shareholders’ Association and ISS Governance Services recommending a vote against the report.

    However, the vote passed on Thursday, with 82 percent voting to adopt the revised report and 17 percent voting against – avoiding the 25 percent against vote that would have triggered a first strike against the JB Hi-Fi board.

    Last year, 21 percent of JB Hi-Fi shareholders voted against the report, prompting fears of a potential first strike at this year’s meeting.

  • JB Hi-Fi reports record profits, sales in FY19

    JB Hi-Fi reports record profits, sales in FY19

    JB Hi-Fi has seen record profit and sales for the 2019 financial year, leveraging strong communications, fitness and games hardware sales to deliver growth across all channels of the business.

    Net profit for the year grew 7.1 percent to $249.8 million, compared to the $233.2 million seen last year, while total group sales grew 3.5 percent to $7.1 billion – up from $6.9 billion in FY18.

    JB Hi-Fi Group chief executive Richard Murray said the group was pleased with the result, and that the success of the JB Hi-Fi brand during a difficult second half in Australia proves it has the right business model.

    “It was a solid result for JB Hi-Fi Australia, and a particularly pleasing finish for FY19 with strong sales in the key tax time promotional period,” Murray said.

    Comparable sales grew 2.8 percent, while total sales grew 4.1 percent to $4.73 billion – driven by communications, audio, fitness, games hardware and connected technology.

    However, the company’s media segment underperformed. Sales in the category fell 7.3 percent compared to FY18, with a double-digit decrease in movies and music sales offset by strong growth in the gaming software segment.

    Murray noted during an investor call that while store roll-outs had slowed, physical locations remain key to its growth, even as it expands the online channel, which grew 23 percent in FY19 and now makes up 5.5 percent of total sales.

    The New Zealand business also saw strong growth online, with 38.3 percent growth in online sales to NZ$13.3 million, or 5.6 percent of total sales. Comparable sales grew 8.2 percent, while total sales grew 2 percent to NZ$236.2 million.

    According to Murray, this result is evidence that JB Hi-Fi’s offer is resonating with New Zealand customers, and proves that hiring New Zealand managing director Cherie Kerrison to lead the international business was the right call.

    As for the recently acquired The Good Guys brand, total sales grew 2.2 percent to $2.15 billion, with comparable sales up 0.9 percent, while online sales grew 3.7 percent to $130.9 million.

    “In a competitive environment, we remained focused on sales and market share whilst stabilizing gross margins and continuing to evolve the business,” Murray said.

    JB Hi-Fi Group will continue to invest in The Good Guys brand while seeking to maintain and enhance it, said Murray.

    One such initiative will be to take learnings from JB Hi-Fi’s telecommunications category and use it to launch a similar offering in The Good Guys.

    Looking to the next 12 months, the retail group expects total sales for FY20 to reach $7.25 billion – with JB Hi-Fi Australia to contribute $4.84 billion, JB Hi-Fi New Zealand NZ$240 million, and The Good Guys $2.18 billion.

    Murray notes that while the business continues to see variability in the overall retail channel, JB Hi-Fi enters the new financial year confidence in its ability to execute and grow market share.

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  • JB Hi-Fi sales slow as New Zealand turnaround begins

    JB Hi-Fi sales slow as New Zealand turnaround begins

    JB Hi-Fi has recorded significantly lower sales on the prior corresponding period (pcp) in the first weeks of FY18 trading, outlining an expectation that the market will remain competitive heading into the Christmas trading period.

    In a trading update delivered at its Annual General Meeting on Thursday, JB Hi-Fi advised that year-to-date sales growth to October 22 was 6.2 per cent, down from 14.3 per cent in the pcp.

    Comparable sales growth for JB Hi-Fi was 3.2 per cent, down from 10 per cent in the pcp, while The Good Guys booked 3.1 per cent total sales growth and 2.4 per cent comparable sales growth.

    Sales moderated in September and October due to changes in the timing of “key product releases” from last year, which the company said had elevated sales growth in the pcp.

    “[We] expect the market to remain competitive as retailers drive for market share in the lead up to the key Christmas period,” the company said on Thursday.

    “In JB Hi-Fi and The Good Guys, we believe we have to unique and relevant brands, particularly in the eyes of our customers … we are confident we will maintain our market leading competitive position.”

    JB Hi-Fi Group CEO Richard Murray told investors at the AGM that since Terry Smart had been appointed as managing director of The Good Guys in April a variety of positive changes had been made to the business.

    This has reflected in TGG’s year-to-date trading, which is well up on the 1.3 per cent decline in comparable sales that JB Group booked for the business between November 2016 and June 2017.

    Murray reiterated his confidence in JB’s prospects against incoming competitors like Amazon, saying the strategy that’s been adopted to deal with the changing retail landscape has been extensively researched.

    “We have engaged and researched internationally and have challenged our current and future strategies, particularly as they relate to new competitors,” Murray said.

    “From price intelligence and benchmarking, delivery and fulfilment capability, digital infrastructure to customer experience, we have undertaken detailed analysis and planning and are confident in our go to market plans.”

    Murray also signalled that the first stages on his turnaround of NZ operations, which he called out at the full-year result in August, are underway, with the launch of a new e-commerce website.

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  • JB Hi-Fi expects flat year as first-half profit dips

    JB Hi-Fi expects flat year as first-half profit dips

    Shares in JB Hi-Fi have risen more than 3 percent after the Australian consumer electronics retailer reported a 1.9 percent fall in first-half net profit to AUD88.5 million (USD68.8m) and confirmed flat earnings for the full year.

    Chief executive Richard Murray reaffirmed guidance for full-year sales of AUD3.6 billion after the retailer posted stronger sales growth in the December quarter and a surge in sales in January.

    Murray said net profit for the 12 months ending June was expected to come in between AUD127 million and AUD131 million, compared with AUD128 million in financial 2014.

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