JB Hi-Fi profit exceeds expectation

JB Hi-FiJB Hi-Fi will launch a $15.2 million share buyback after lifting its full year profit 6.35 per cent following a big increase in second half sales.

The home and electronic goods retailer’s net profit of $136.5 million for the 12 months to June 30 was up from $128.4 million for 2013/14. It had expected profit in the region of $127 million to $131 million.

Total revenue increased 4.8 per cent to $3.652 billion, driven by a rise in second-half sales of 7.4 per cent on growth across telecommunications, fitness, computers and home appliances. Comparable sales were up 2.9 per cent.

Online sales were up 16.9 per cent and represent approximately 2.9 per cent of total sales.

The retailer said it would buy back 776,610 ordinary shares in an on-market buyback between September and December.

“It was pleasing to see our sales and earnings momentum grow through the financial year. Trading in June was particularly strong as we cycled a soft trading period in the prior year and enjoyed the benefits of solid sales growth assisted by the small business tax incentives,” JB Hi-Fi CEO, Richard Murray, said.

As of June 30, the company had 187 stores in New Zealand and Australia and expects to open six new stores in FY16, maintaining its target of 214 stores across New Zealand and Australia.

The rollout of the company’s Home concept continues. There are 43 JB Hi-Fi Home stores, with four new stores opened and 17 existing JB Hi-Fi stores converted. The company is aiming for a total of 75 JB Hi-Fi Home stores across Australia and New Zealand.

“Each new JB Hi-Fi Home store contributes to growing our customer awareness, market share and supplier support. This, combined with our ongoing investment in store wages, staff training and supply chain, places us in a solid position to continue our expansion,” Murray said.

In addition to the Home concept, small appliances will also be sold in existing JB Hi-Fi stores which won’t be rebranded as JB Hi-Fi Home. However the store layout will be reconfigured to make room for the new category.”The rollout of small appliances to our existing store network is a natural progression of our proven home appliances strategy,” Murray said.

“We have an aggressive store investment program including rolling out JB Hi-Fi Home, the continued roll out of small appliances to a number of existing stores and upgrades to a number of our stores. This will position us well int he lead up to the important Christmas and New Year sales periods,” Murray said.

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