Q2 growth and positive outlook for FY16.
JB Hi-Fi’s share price hit $23.85 on Thursday, almost reaching its all-time high of $23.94 set in February, following the retailer’s update on March quarter trading at the Macquarie Australia Conference.
- Australian sales increased by 8.8% while same store sales grew 5.4%
- New Zealand sales increased 10.5% and same store sales grew 4.7%
- Group quarterly sales increased 8.6% and group same store sales grew 5.2%
JB said this was a “pleasing result” given the timing of Easter and school holidays.
“JB Hi-Fi has continued to see good sales momentum in the second half of fiscal 2016. We continue to focus on delivering great value to our customers to ensure that we remain the preferred destination for consumer electronics, home appliances and entertainment,” the company said in its presentation.
The retailer has a strong promotional plan for May and June and expects total sales for FY16 to be circa $3.9 billion and NPAT to be in the range of $143 million to $147 million.
During FY16, JB will open nine new stores, including five in the Home format and close two stores. The company expects to have 58 Home stores at the end of FY16 with its target of 75 Home stores expected to be reached during FY17.
“In addition to the Home roll-out, we continue to introduce small appliances to existing JB Hi-Fi stores. We will have 50 JB Hi-Fi stores with small appliances by the end of FY16.
“We continue to evolve our digital services in response to our customer needs with a number of exciting initiatives launched on our ecommerce site, including peer to peer product reviews and predictive search,” the company said.
Executive changes
James Saretta, previously a partner with EY Consulting, has joined the executive team in the position of strategy and digital director. His role includes strategic responsibility for online.
Cameron Trainor has taken on responsibility for marketing in addition to his existing merchandise responsibilities.
Tim Carter has taken on responsibility for supply chain in addition to the JB Hi-Fi solutions business.