JB Hi-Fi reports record result as new year spending continues to boom

Australians have continued to spend record amounts on electronics and whitegoods in the new year with retail powerhouse JB Hi-Fi reporting bumper January sales following a record -year result.

On Monday morning the company announced to investors its financial results for the last six months of 2020, with the business’ total sales jumping 23.7 per cent to $4.9 billion.

JB Hi-Fi ’s first profit has nearly doubled to $317.7 million. Credit:Fairfax Media

Net profit at the prominent retailer near doubled, rising 86.2 per cent to $317.7 off the back of an electronics spending spree driven by heightened stimulus and COVID-19 lockdowns forcing more people to work from home.

This boom was reflected in JB Hi-Fi’s 161.7 per cent spike in online sales, which now up nearly 14 per cent of the business’ total sales at $678.8 million. JB’s interim dividend also nearly doubled, with the set to pay shareholders $1.80 per share on March 12.

“We are pleased to report record sales and earnings for HY21, in what has been an extraordinary period,” chief executive Richard Murray said. “Our continued focus on the customer, and investments in our online and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both in-store and online.”

“I would like to thank our over 13,000 team members who have continued to do an incredible job and worked tirelessly throughout this period. As I have said before, our team members are our number one asset and our most important competitive advantage; their dedication and deep product knowledge continues to delight our customers every day.”

January sales at the continued to grow in line with the prior six months, up 17.3 per cent at JB Hi-Fi Australia and 14.1 per cent at whitegoods seller The Good Guys. The company continued to withhold guidance, however, pointing to ongoing uncertainty with COVID.

Sales across the were driven largely by a 25.8 per cent spike in trade of computers, gaming consoles, phones and small appliances. Movies sales fell, but spending on video games and music rose. The Good Guys reported a similar trend, with refrigerators, portable appliances, televisions and computers booming as customers ‘cocooned’ inside.

JB did not receive any wage subsidies through 2020 and continued to pay landlords rent.

More to come

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