JB Hi-Fi posts record first half sales on the back of Black Friday, Boxing Day sales

JB Hi-Fi posts record first half sales on the back of Black Friday, Boxing Day sales

“Well-executed” Black Friday and Boxing Day promotional periods have landed record sales and earnings in the December half for JB Hi-Fi (ASX: JBH), which reported profit growth of 14.6 per cent as a result.

The retailer, specialising in consumer electronics via its banner brand JB Hi-Fi and home appliances through specialist brand The Good Guys, saw total sales rise by 8.6 per cent to hit $5.3 billion in the half.

Earnings rose at a faster clip still by 14 per cent to reach $479.2 million across the group.

Total group online sales were $752.1 million, representing 14.2 per cent of total sales. This is a decline on the lockdown-affected period of 1H22 when online sales reached $1.1 billion, but higher than the $678.8 million achieved in 1H21.

With 319 stores across Australia and New Zealand as at 30 June 2022, the group noted sales growth was driven by continued elevated demand for consumer electronics and home appliances, buoyed by the two peak sales periods in the half.

“We are pleased to report record sales and earnings for HY23 as trading conditions started to normalise following two years of COVID related disruptions,” JBH CEO Terry Smart said.

“Our relentless focus on providing the best value and high levels of customer service every day, both in store and online, continues to resonate with our customers.”

Sales growth was most pronounced in the company’s New Zealand business, which generated $160.6 million - representing 16.1 per cent growth.

However, the New Zealand business also saw earnings decline in the half, down by nearly $2 million (or 26.5 per cent) to $5.4 million in the half.

Back in October at the company’s AGM, Smart said the company had recently completed a review of JB Hi-Fi New Zealand and noted there was ‘a significant opportunity to grow and expand the business’ which accounts for about 3 per cent of total group sales.

“Over the next three years, the group will be investing in improving the JB Hi-Fi New Zealand customer offer, refreshing the store network, opening new stores and upgrading its online platform,” Smart said.

To lead the NZ refresh, JBH appointed former Noel Leeming CEO Tim Edwards, who brings ‘deep local experience and long-standing relationships’. Noel Leeming is one of JB’s competitors in New Zealand, and also sells consumer electronics and appliances.

JB Hi-Fi Australia sales rose by 9.1 per cent in the half to hit $3.6 billion, while The Good Guys delivered sales results of $1.5 billion - up 7.3 per cent on 1H22.

On an earnings basis, JB Hi-Fi Australia generated $341.3 million - up 16.7 per cent, and The Good Guys reported earnings growth of 9.8 per cent to hit $133 million.

The company’s results mirror the broader industry trend during the last month of the half, with the Australian Retailers Association (ARA) in partnership with Westpac DataX reporting earlier this year that Australians spent $74.5 billion in the pre-Christmas period.

That report also found that Boxing Day sales rose by 15.4 per cent - more than double the inflation rate - to reach $1.23 million.

Fellow listed retailer Super Retail Group (ASX: SUL) this week also reported super-charged sales growth for the December half to reach almost $2 billion in revenue as it capitalised on peak sales periods in November and December.

In early trade, shares in JBH are up 4.01 per cent to $48.99 per share.

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