Monday saw a solid interim result from Super Retail Group and a very strong upgrade from payments platform Tyro, which told us that retail spending was still strong with sales growth strong enough to boost revenues to record levels for the six-month period.
Yesterday that duo was joined by JB HiFi, the country’s biggest consumer electronics and whitegoods retailer which delivered a strong rise in sales and a double-digit jump in half-year profits thanks to strong demand during the Black Friday and Boxing Day promotions.
It was another case of bricks and mortar retailing being preferred by consumers as online sales fell for the six months to December.
JB HiFi told the ASX on Tuesday its sales rose 8.6% to a record $5.3 billion in the December half, while net profit increased 14.6% to $329.9 million.
The company said continued strong demand for consumer electronics and home appliances and “well-executed Black Friday and Boxing Day promotional periods” were the main drivers of its sales growth.
Earnings Before Interest and Tax – the key profitability measure in retailing – rose 14.0% to $479.2 million for the six months.
At first the news got a big tick from investors with the shares up more than 5% to a day’s high of $49.92. but as the session meandered onwards through the day, second thoughts emerged and the shares steadied and then fell to close down 1.2% at $46.51.
It was an odd reaction to what was a solid set of numbers for the half year.
The group’s Australian operations grew sales 9.1% to $3.6 billion, while its New Zealand sales increased 16.1% to $161 million as JB HiFi starts upgrading and spending more on its stores, marketing and distribution. Whitegoods retailing subsidiary The Good Guys saw a 7.3% growth in sales to $1.5 million.
It comes after the retailer reported 9.4 per cent profit decline in the previous December half, which included disruptions to operations as a result of COVID-19.
Group chief executive Terry Smart said in the ASX filing the latest results reflected a return to normal trading by consumers.
“We are pleased to report record sales and earnings for [the half year] as trading conditions started to normalise following two years of COVID related disruptions,” he said in.
“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,” he said.
The full financials and interim dividend will be out on February 13. The size of the payment might change investor thinking. the company paid an interim of $1.63 a share a year ago.
Online sales reversed in the latest half. In the six months to December, 2021, online sales surged 63% to $1.1 billion – or 22.7% of the company’s total sales but that fell away in the latest six months with sales falling 14.2% of higher total sales or $752.1 million.
