- Retailer JB Hi-Fi (JBH) has restored and grown its full-year guidance after the coronavirus gave the store a sales boost
- The company is now expecting a full-year net profit after tax of $300 million to $305 million, which is a 20 to 22 per cent increase compared to last year
- JB Hi-Fi dropped its guidance in late March, however, its Australian JB-Hi-Fi and Good Guys stores remained open during the lockdown
- Due to strong demand for office and entertainment supplies, the company reported a 20 per cent rise in sales for the first five months of the year
- However, it’s another story for the New Zealand stores, with sales down 19.3 per cent due to store closures because of COVID-19
- Due to the sales drop, JB is expecting to take on $25 million in impairment costs for the full year
- On the market this afternoon, JB is down 3.24 per cent and is selling shares for $40.64 per share
Retailer JB Hi-Fi (JBH) has restored and grown its full-year guidance after the coronavirus gave the store a sales boost.
The company now expects a full-year net profit after tax of $300 million to $305 million, which is a 20 to 22 per cent increase on the prior financial year.
Australia
JB Hi-Fi dropped its guidance in late March, however, its Australian JB Hi-Fi and Good Guys stores remained open during the lockdown. The stores saw an increase in purchases for office supplies.
From those sales, the company reported a 20 per cent rise in sales for JB Hi-Fi Australia for the first five months of the year. The Good Guys were similar with revenue up 23.5 per cent.
New Zealand
However, it’s another story for JB’s New Zealand stores, with sales down 19.3 per cent due to store closures surrounding COVID-19. JB is expecting to take on $25 million in impairment costs for the full year.
Its New Zealand stores are now up and running and have been performing solidly, according to the company.
But due to the strong demand in Australia, the New Zealand sales drop has not impacted the full-year net profit forecast of between $300 million and $305 million.
CEO Richard Murray is pleased with the company’s performance in these uncertain times.
“I would like to thank our over 12,000 team members who have done an incredible job in meeting the extraordinary challenges faced over the past few months. Our customers have continued to turn to us for their technology and home appliance needs and our team members have responded and adapted in an amazing manner to make sure we can do it safely and effectively,” he said.
“We are in the process of finalising a recognition program for our store team members to reflect their over and above efforts through this period and look forward to sharing this with our team before the end of the financial year,” he added.
On the market this afternoon, JB is down 3.24 per cent and is selling shares for $40.64 per share at 3:16 pm AEST.