By Mike Cherney
SYDNEY–Australian electronics retailer JB Hi-Fi said its half-year net profit fell by 20%, as consumers pulled back on discretionary spending amid elevated inflation.
The company, which has more than 300 stores in Australia and New Zealand, said net profit in the six months through December was 264.3 million Australian dollars (US$172.2 million), down from A$330 million a year ago. The result was ahead of market expectations for half-year net profit to be A$238 million, as assessed by FactSet.
Half-year sales fell by 2% to A$5.16 billion, compared to market expectations of A$5.14 billion, according to FactSet. The company said the trading environment became more challenging over the half year as competition rose and there was increased on-floor discounting.
JB Hi-Fi declared an interim dividend of 158 Australian cents per share, compared to 197 Australian cents per share last year.
Half-year comparable sales increased by 0.1% in the retailer’s main Australia business, but gross profit decreased by 3% due to sales and discounting. In New Zealand, comparable sales decreased by 1.2%, though gross profit rose by 8.9%. At its Good Guys home-appliance chain, comparable sales decreased by 9.9%.
The retailer offered a mixed picture for its January trading performance. Comparable sales in Australia rose by 1.7%, but declined by 4.1% in New Zealand fell by 2.2% for the Good Guys.
The company posted high profits after the coronavirus pandemic hit as consumers sought out work-from-home gear and entertainment during lockdowns, but some analysts have been worried about the outlook for the consumer-electronics sector amid broader cost-of-living pressures.
Write to Mike Cherney at [email protected]
Read the full article here
