JB Hi-Fi takes NZ hit

JB hi-fiTotal New Zealand sales for electronics chain, JB Hi-Fi suffered in the first half of the 2015 financial year, dropping 4.3 per cent.

Total sales for NZ were A$113 million, with comparable sales down 6.4 per cent, primarily driven by cycling digital switchover in the PCP.

For the total group, including both Australia and NZ, sales grew by 1.3 per cent to A$1.97 billion, down 0.7 per cent on a comparable basis.

NZ gross margin increased 45 basis points to 18 per cent, due to improved buying terms. Gross margin for the local business was A$20.4 million.

The cost of doing business increased to 14.8 per cent, a growth of 53 basis points, mainly attributable to reduced operating leverage.

There are 14 JB Hi-Fi stores in NZ, one of which is a JB Hi-Fi Home which opened in the first half of the year. In the second half of FY15 another kiwi Home store will open.

Total sales for Australia, where there are 171 stores, grew 1.4 per cent to A$1.86 billion, down 0.6 per cetn on a comparable basis.

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