Retailer of entertainment and home appliances, JB Hi-Fi [ASX:JBH], has today posted record sales and earnings over the second quarter of FY23. The retailer says it has seen normalising conditions post-COVID.
The company reports earnings before interest and tax has gone up 14% on an 8.6% increase in sales to $5.3 billion over the quarter.
For the half-year, net profit climbed almost 15%, with a total of $329.9 million.
JBH shares had risen 4.5% earlier this morning (17/01/2023), priced at $48.80 each by mid-morning.
The JBH stock price has increased 11% over the past month and is up more than 12% in the new year to date:
Source: Tradingview.com
JB Hi-Fi’s record sales and earnings for Q2 FY23
JB Hi-Fi today presented its latest financial report for its trading period over Q2 FY23 and provided its preliminary unaudited half-year financials.
Due to continuing elevated consumer demand in the aftermath of the COVID-19 pandemic, with a particular interest in the electronics and home appliances genre, JB quoted an increase in sales throughout the half year as rising 8.6% to $5.3 billion.
For the half year to 31 December, net profit had climbed 14.6% to $329.9 million (on the $287.9 million posted the same time FY22).
In the fiscal second quarter, JB Hi-Fi said comparable sales rose 4.9% for its Australia segment, 9.8% in its New Zealand segment, and 3.3% in the Good Guys division.
Overall group sales growth, helped along with simultaneously improving gross margins, were said to contribute to strong EBIT growth of 14% to $479.2 million.
Black Friday and Boxing Day promotions were addressed as fundamental factors that had significantly contributed to the company’s earnings increase, and the group’s online sales were also a significant element, being about 14% of the overall total.
Source: JBH
Terry Smart, CEO of JB Hi-Fi, stated:
‘We are pleased to report record sales and earnings for HY23 as trading conditions started to normalise following two years of Covid related disruptions. Our relentless focus on providing the best value and high levels of customer service every day, both in store and online, continues to resonate with our customers.
‘As always, a key part of our continued success is our over 13,000 team members and their passion and dedication to looking after our customers’ needs. I would again like to thank them for delivering this outstanding result.’
Today’s results were unaudited and are yet to be reviewed and finalised. The group expects to achieve this by 13 February, when it intends to release its audited statutory results for the half year.
In the meantime, investors can take some assurance in the improving market conditions found in the evidence of six months of record sales and earnings as experienced by JB, and otherwise providing some hope that as retail conditions begin to stabilise, so too shall profits rise.
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