Home entertainment retailer JB Hi-Fi has posted record earnings and sales for the 2022 financial year, as Covid restrictions eased and customers returned to brick and mortar stores to shop.
JB, which also owns The Good Guys, reported strong sales momentum through the year, with total sales up 3.5 per cent to $9.2 billion.
Online sales were up by 52.8 per cent to $1.6 billion, making up 17.6 per cent of total sales.
The results came after varying Covid restrictions applied in different states, including store closures in Greater Sydney and Victoria from mid-July 2021.
Preliminary full-year earnings before interest and tax jumped 6.9 per cent to $794.6 million, with second half FY22 earnings rising more than 33 per cent, driven by elevated sales growth and improved gross margins.
The group said it continued to see heightened consumer demand in the April 1 to June 30 quarter this year.
“We are pleased to report record sales and earnings for FY 2022,” group CEO Terry Smart said.
“The benefits of having a strong multichannel strategy were especially evident in the second half as Covid restrictions eased and customers returned to shopping in store whilst continuing to shop with us online.
“It’s a credit to our over 13,000 team members who continue to remain focused on providing outstanding customer service and worked tirelessly to deliver this record result.”
Retail sales set a record for the third straight month in May, with $34.2 billion splurged in stores and online, Australian Bureau of Statistics figures show.
But the Australian Retailers Association (ARA) has cautioned that while sales are strong, the growth is unlikely to be sustainable and also reflects higher consumer prices on the back of inflation.
Business costs were rising, along with fuel and energy, while supply chain challenges continued.
“It’s unlikely we’ll see retail spending maintain these levels as the rising cost of living begins to take hold on family budgets, ARA CEO Paul Zahra said last month.
“A generation of homeowners are experiencing their first interest rate hikes, so there’ll be some natural belt tightening.
“When people rein in spending, discretionary purchases are some of the first things they cut.”
A generation of homeowners are experiencing their first interest rate hikes, so there’ll be some natural belt tightening. When people rein in spending, discretionary purchases are some of the first things they cut.
The JB group will provide its full year audited results on August 15.
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