JB leads, Harvey follows, Clive dead: retailer review

By Keri Algar

SYDNEY, NSW: A marked variance in profit results has been recorded for consumer electronics retailers for the financial year ended June 2010.

Despite the cycling of the stimulus package and the retail slow down, net profit after tax was upbeat for publicly listed retailers including Dick Smith, Betta Electrical and Harvey Norman, with JB Hi-Fi issuing the highest results.

JB Hi-Fi recorded a 26 percent full year net profit and a notable 17 per cent increase in sales. In comparison, Dick Smith posted an 8.5 per cent rise in sales for the full year, whilst noting that new format stores were outperforming older store formats.

Meanwhile, Harvey Norman and Betta Electrical posted a similar profit growth, paying their shareholders comparable dividends.

BSR Group listed a 7.5 per cent increase in profit after tax, nearly on par with giant retailer Harvey Norman who posted an 8 per cent growth in net profit.

Retailer predictions for FY11 varied between buoyant and conservative.

Harvey Norman said he was “determinedly optimistic” last week in his statement to the Australian Securities Exchange, while JB Hi-Fi CEO Terry Smart – who issued an outstanding result – said he expected “another good year of sales and earning growth”.

Clive Peeters, meanwhile, was placed in administration during FY10. Harvey Norman has since purchased just over 30 of the Clive Peeters and Rick Hart-branded stores.