The JB Hi-Fi Ltd [ASX:JBH] shares shot up by more than 7% this morning on the back of a promising Q2 sales update.
For the quarter ending 31 December 2021, JBH saw sales customer demand rise.
JB Hi-Fi today also released its preliminary unaudited HY22 financial results.
At time of writing, the entertainment retailer’s shares are up 7.2%.
Let’s go over JBH’s update in more detail…
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JBH’s growth momentum in FY22
JB Hi-Fi’s update revealed several key highlights.
The retailer said its sales momentum was ‘strong throughout the half, with continued heightened customer demand for both consumer electronics and home appliance products.’
Group CEO, Terry Smart, commented:
‘We are pleased to report strong sales and earnings for HY22. In challenging circumstances, we have again demonstrated our ability to adapt and respond to meet the strong demand from our customers, both in-store and online.’
Total sales for the half were $4.86 billion, down 1.6% on last year but up 21.7% over a two-year period.
In a metric likely to grow in importance, JBH’s online sales reached $1.1 billion, up 62.6% on last year, representing 22.7% of total sales.
JBH considered its EBIT as ‘strong’, coming in at $420.5 million, up 59.9% over a two-year period.
However, EBIT was down 9.1% on HY21.
JBH’s New Zealand segment fared worst, reporting a 4.5% drop in sales in HY22.
What’s next for the JB Hi-Fi share price?
JBH will release its half-year audited statutory results on 14 February 2022.
While the retailer posted somewhat flat year-on-year half-yearly results, investors may still have been buoyed by JBH’s two-year sales performances, especially when you factor in the recent Omicron upheaval.
The challenges associated with COVID-19 pose interesting questions for the future business model of the retailer.
JBH’s online sales grew a significant 62.6% year-on-year. Will this growth continue into 2022 and beyond? Or is the online sales bump transitory, easing in tandem with Omicron cases?
These are interesting questions, but time will tell.
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