In a trading update for July 2024, JB Hi-Fi Australia recorded 5.6% sales growth with comparable sales up 5.2%, while The Good Guys saw both total sales and comparable sales grow 2.7%.
“It is pleasing to see sales momentum in Australia continue into July,” JB Hi-Fi Group CEO, Terry Smart said.
“We remain committed to offering the best value and exceptional customer service to maximise sales opportunities. As always, the results are a credit to our over 15,000 team members whose support and commitment ensure the ongoing success of the business. We will remain focused on our customers’ needs and continue to innovate as we navigate another uncertain year.
“Sales differ between the JB Hi-Fi and The Good Guys brands and while we anticipate that we are gaining market share, we just do whatever it takes to ensure customers are shopping with our brands.
“When you think about JB Hi-Fi, the tech categories continue to perform well. Although TVs were soft, categories such as mobile phones and laptops are becoming less discretionary. We also saw good growth from small appliances, particularly vacuum cleaners, which may be a flow-on effect from the closure of Godfrey’s. By comparison, The Good Guys saw strength in major home appliance categories, which is more likely to reflect market share gains.”
Smart expects AI-enabled devices to give the group runway for further growth, particularly in the strength of average sell price (ASP) in the computer category.
“We anticipate more brands and players such as AMD and Intel to launch Silicon AI and the availability of models to increase. We will eventually see prices come down, but these models will remain in the premium space. In telco, we maintain that we still have low market share, albeit there’s opportunity for growth,” he said.
“For The Good Guys, the small appliance category is doing exceptionally well, as well as refrigeration and laundry. Good growth from these products helps support our gross margin, as they are higher margin categories.
“When you think of an average sales transaction in tech for JB Hi-Fi during the reported period, it was slightly up, and volume was slightly down. ASP has held up which is more to do with the product mix than individual categories. Computers and telco for example have held up well.
“For The Good Guys, it was the reverse trend. Volume was up and ASP was down, which reflects the value equation from consumers when it comes to whitegoods.”