JB Hi-Fi’s latest results show shoppers are snapping up smart home tech, games hardware

JB Hi-Fi says it has managed to source enough stock and deliver on time despite pandemic-related supply woes as Aussies upgrade their home tech.

There’s no doubt JB Hi-Fi has had a stellar pandemic as Australians indulge in home tech upgrading, but the electronics and appliance giant has decided against providing full-year guidance, citing uncertainty due to Covid-19.

The group, which includes The Good Guys, on Monday reported a 1.6 per cent dip in total sales for the six months to December 30 compared with the same period a year prior but up almost 22 per cent over a two-year period.

Net profit was down 9.4 per cent on the fiscal 2021 first half but up an impressive 68.8 per cent over two years.

As for January, sales mainly grew but dipped in New Zealand, where the numbers again looked good over the longer term.

Explaining why full-year sales and earnings guidance would not be given, chief executive Terry Smart said “it remains an uncertain retail environment”.

Online represented 22.7 per cent of total sales during the first half but just 14 per cent excluding periods where stores were temporarily closed. Picture: NCA NewsWire / Andrew Henshaw

“It already largely well telegraphed some of these numbers a couple of weeks ago,” CommSec market analyst Steven Daghlian said.

“Markets were well prepared for this.”

But investors were impressed with JB Hi-Fi announcing a $250m share buyback and an interim dividend of $1.63 per share, albeit down from $1.80 previously.

In line with broader retail trends, online sales were a standout, now representing almost one-quarter of total sales, helped in no small part by temporary store closures.

JB Hi-Fi said its online and supply chain operations had scaled up and maintained a high level of customer service, including on-time delivery, crediting its wide variety of product suppliers.

It also credited upgrades to its websites and distribution centres and expanded delivery options.

In Australia, best-selling categories were small appliances, smart home tech, games hardware, accessories and visual tech, but movies, music and games software sales fell.

For The Guy Guys, best-selling categories were portable appliances, floorcare, laundry, dishwashers and cooking.

Originally published as JB Hi-Fi’s latest results show shoppers are snapping up smart home tech, games hardware