Story image

JB Hi-Fi Kiwi sales, profit up

10 Feb 16

JB Hi-Fi’s New Zealand sales were up 12.7% in the half year to 31 December, with the retailer experiencing greater growth in the Kiwi market than in Australia.

The company recorded total sales of $127.3 million in New Zealand, with comparable sales up 5.2% for the period.

Gross profit for the half year for New Zealand sat at $23.0 million – up from $20.4 million for the same period in FY15, depsite the cost of doing business in New Zealand increasing 53 bps to 15.3%.

The growth was driven by the opening of two new stores in the past 12 months – including one in HY16 – and ‘elevated’ market-wide demand for third-party prepaid content cards. Those cards accounted for $8.4 million in sales, JB Hi-Fi says.

Removing the cards from the sales figures reduces the total sales growth in New Zealand to single digits, at 5.3%, while comparable sales slump into the negative, at -1.8%.

The company notes it introduced small appliances to three existing Kiwi JB Hi-Fi stores in HY16. Across the region, the company is pushing into the Home market with its JB Hi-Fi Home stores, for which it currently has four in New Zealand. Two existing JB Hi-Fi stores are expected to be converted to Home stores in FY16. The company also has 11 JB Hi-Fi stores across New Zealand.

“In the long term we expect most stores to carry appliances, with the range – ie, small appliances versus full Home offer – tailored to suit each specific store,” the company says.

The Kiwi figures were helped by a bumper Q1 for FY16, which saw JB Hi-Fi record sales growth of 18.4% - compared with just 4.7% in Australia. Comparable growth for New Zealand hit 10.9% for Q1, versus 3.4% for Australia.

Q2 of the year saw growth drop slightly, to 8.9%, locally.

The company says gross margin in New Zealand increased 4bps 10 18.1%.

The retailer says it expects to open one new JB Hi-Fi store in New Zealand this financial year.

Across both the Australian and New Zealand operations, JB Hi-Fi logged total consolidated sales of 7.7% to AU$2.12 billion, with comparable sales up 5.2%, and gross profit of AU$459.6 million.

The Australian operations saw sales grow 7.5% to $2.0 billion, with comparable sales up 5.2%, with hardware and services sales leading the growth, at 10.2%, diven by telco, fitness, accessories, computers and home appliances.

Software sales, however slumped, down 4.6%, and on a comparable basis were -6.6%.

The company says its November and December sales were strong.

Dell EMC embeds security in latest servers
Dell EMC's 14th generation of PowerEdge servers has comprehensive management tools to provide security across hardware and firmware.
Hands-on review: The Logitech R500 laser presentation remote
With a clever ergonomic design, you’ll never have to glance at the device, unless you deliberately look to use the built-in laser pointer to emphasise your presentation.
Noel Leeming slapped with $200,000 fine for misrepresentation
“This prosecution related to multiple consumers in multiple locations. It was not isolated or ‘one off’ conduct.”
Review: Should you buy the Fitbit Charge 3?
If you are new the to the world of wearables you might be wondering if Fitbit’s new offering is a good first step. Maybe I can help with that.
The disaster recovery-as-a-service market is on the rise
As time progresses and advanced technologies are implemented, the demand for disaster recovery-as-a-service is also expected to increase.
Dell dominates enterprise storage market, HPE declines
The enterprise storage system market continues to be a goldmine for most vendors with demand relentlessly rising year-on-year.
Lenovo DCG moves Knight into A/NZ general manager role
Knight will now relocate to Sydney where he will be tasked with managing and growing the company’s data centre business across A/NZ.
Avnet to boost AI/IoT solutions with acquisition
The acquisition of Softweb Solutions adds software and artificial intelligence to Avnet’s ecosystem and bolsters its IoT capabilities.