JB Hi-Fi (JBH) betters consensus again

Stock

JB Hi-Fi (JBH) $43.02 as at 10/02/2020

Event

Stand out electronics retailer JB Hi-Fi released it’s first half earnings report today which has sent the stock more than 7% higher to all-time highs, while the broader market struggles to get going. In what was considered to be a difficult 6 month period for retail in Australia, JB have managed to grow earnings 6.55% to $170.6m for the first half largely a result of margin improvements with revenue adding 3.9%.

The bulk of the good work was done by the JB Hi-Fi Australia unit which saw particular growth in hardware, while an improving online offering added 18.3% to sales. The Good Guys brand also contributed positively with 1.5% sales growth, ending the year with a wet sale with 2Q sales +2.7%  pcp.

The company also trumpeted an impressive start to the new year. Comparable sales for January in JBH Australia are 6% higher than last year, while The Good Guys was tracking +1.4% on January 19. Guidance for the full year was provided, with NPAT at $265m to $270m around 7% higher than FY19, and around 2.5% better than consensus estimates.

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