JB Hi-Fi NZ operations fall into the red in challenging trading environment

Electronics and appliance retailer JB Hi-Fi reported total sales of $5.492 billion (A$5.16 billion) for the six months ended December 31, down from $5.3 billion year on year.

In New Zealand, despite sales rising 5.1 per cent to $168.8 million, comparable sales slipped by 1.2 per cent and EBIT fell $5.7 million to a loss of $394,000.

The company’s net profit after tax was $281.3 million compared to last year’s $351.2 million.

Sales in Australia were flat, up only 0.7 per cent to $3.85 billion, with comparable sales up 0.1 per cent. EBIT dropped 13.7 per cent to $313.5 million.

Online sales increased by 0.8 per cent to $577.9 million and accounted for 15 per cent of total sales. 

The key growth categories in the market were mobile phones, games hardware, small appliances, whitegoods and services. 

Sales of the group’s The Good Guys appliance chain fell by 9.9 per cent to $1.479 billion, with comparable sales also down 9.9 per cent.

JB Hi-Fi Group CEO Terry Smart said the firm faced a “more challenging” trading environment marked by heightened competitive activity and increased on-floor discounting.

“Our focus remained on maximising customer demand through delivering consistently high levels of customer service and driving best value for our customers.” 

Further reading: Retail at the end of the world: How JB Hi-Fi aims to disrupt the NZ market.

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