JB Hi-Fi reports record sales for fiscal year 2022

Home entertainment retailer JB Hi-Fi reported record earnings and sales for fiscal year 2022 as Covid restrictions eased and shoppers returned to brick-and-mortar stores to shop.

JB, which also owns The Good Guys, reported strong sales growth during the year, with total sales up 3.5% to $9.2 billion.

Online sales grew 52.8% to $1.6 billion, accounting for 17.6% of total sales.

The results come after various Covid restrictions enforced across states, including store closures in Greater Sydney and Victoria from mid-July 2021.

Preliminary full-year earnings before interest and taxes jumped 6.9% to $794.6 million, with FY 2022 second-half earnings up more than 33%, driven by accelerated sales growth and improved gross margin.

The group said it continued to see increased consumer demand in the quarter from April 1 to June 30 this year.

“We are pleased to report record sales and earnings for fiscal year 2022,” said Group CEO Terry Smart.

“The benefits of a strong omnichannel strategy were especially evident in the second half of the year as Covid restrictions eased and shoppers returned to in-store shopping while continuing to shop online with us.

“This is a credit to our more than 13,000 team members who remain focused on providing excellent customer service and have worked tirelessly to achieve this record-breaking result.”

Retail sales set a record for the third straight month in May, with $34.2 billion spent in stores and online, data from the Australian Bureau of Statistics shows.

But the Australian Retailers Association (ARA) warned that despite strong sales, growth is unlikely to be sustainable and also reflects higher consumer prices amid inflation.

Selling costs rose along with fuel and energy, while supply chain problems persisted.

“We are unlikely to see retail spending remain at this level as the rising cost of living starts to take its toll on household budgets,” ARA CEO Paul Zahra said last month.

“A generation of homeowners is experiencing the first spikes in interest rates, so there will be a natural belt-tightening.

“When people limit spending, they cut back on purchases as they see fit.”

A generation of homeowners is experiencing the first spikes in interest rates, so there will be a natural belt-tightening. When people cut spending, the first thing they do is cut back on rash purchases.

The JB group will present verified results for the full year on August 15th.

Originally published as JB Hi-Fi reports record earnings and sales for fiscal year 2022