Retail bellwether JB Hello-Fi bucks client pullback | Australian Markets
Electronics behemoth JB Hello-Fi has dodged the influence of a pullback in client spending to post a near-10 per cent carry in gross sales within the first half of the financial 12 months.
JB Hello-Fi, which additionally owns The Good Guys chain, mentioned whole gross sales rose 9.8 per cent to $5.67 billion within the six months to the top of December, above the market’s $5.5b estimate.
Kicking off the primary full week of earnings season on Monday, JB Hello-Fi mentioned web revenue lifted 8 per cent to $285.4 million. Earnings additionally rose 8.6 per cent to $419.9m.
The sturdy outcomes from the company despatched shares hovering to a report high, up to $104.63 in early trade.
Broadly seen as a bellwether for the retail sector, JB Hello-Fi mentioned gross sales in Australia have been pushed by continued demand for technology and client electronics merchandise.
This was supported by well-executed Black Friday and Boxing Day promotional intervals.
Complete gross sales grew 7.2 per cent to $3.88b, with cell phones, small home equipment, computer systems, televisions and cameras the important thing growth areas.
JB Hello-Fi additionally operates in New Zealand, the place gross sales elevated 20 per cent to $NZ202.5m ($182m).
Gross sales at The Good Guys — which sells white items — rose 9.2 per cent to $1.52b, with comparable gross sales up 8.8 per cent.
“In this challenging trading environment, marked by heightened competitor activity, our focus remained on maximising demand through delivering consistently high levels of customer service and exceptional value for our customers,” JB Hello-Fi group chief govt Terry Good mentioned.
Whereas the gross sales momentum continued into January, Mr Good mentioned he remained cautious amid uncertainty within the retail sector and continued aggressive exercise.
“We will continue to adapt and innovate to ensure we remain top of mind as the destination for our categories,” he mentioned.
The company declared an interim dividend of $1.70 a share, up 7.6 per cent.
Extra to return.
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