JB Hi-Fi (ASX:JBH) records record sales following online boom

Tech-hungry consumers helped propel JB Hi-Fi to record sales of $9.2 billion for 2022, as online electronics purchases surged despite brick-and-mortar stores reopening.

The ASX-listed home appliance retailer issued a trading update on Tuesday saying it expects to report net profit after tax of $544.9 million in 2022 next month, up 7 .7% compared to last year.

JB Hi-Fi was among the companies that suffered downgrades from analysts on Tuesday.Credit: Will Willitts

JB Hi-Fi’s preliminary financial results show sales up 3.5% to $9.2 billion and earnings before interest and taxes up 6.9% to $795 million.

The company’s online sales helped fuel earnings, up nearly 53% to $1.6 billion. Online purchases now represent 17.6% of the company’s total sales. When the company released its annual financial results in 2019, that figure was just 5.5% of sales.

JB Hi-Fi managing director Terry Smart said the record profit performance was due to the success of the retailer’s two sales channels.

“The benefits of having a strong multi-channel strategy were particularly evident in the second half, as COVID-19 restrictions eased and customers returned to shop in-store, while continuing to shop online. line with us,” he said.

Sales of appliance brand The Good Guys also performed well, up 7.7% for the June quarter and 2.7% for the full year.

Rising interest rates and inflation led to speculation of a slowdown in spending on non-discretionary goods, but JB Hi-Fi said Tuesday that sales momentum has been strong throughout the year.

The COVID-19 pandemic has helped fuel sales of consumer electronics like game consoles and computers, which often have lower margins than other technologies like computer software or games.

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