JB Hi-Fi reports record first half year results, sales up 8 per cent

By Keri Algar

SYDNEY, NSW: In a sales report CEO Terry Smart has referred to TV price erosion and poor game and console sales but otherwise said he was “delighted” with the results given the difficult retail environment.
“Our sales growth of 8.3 per cent was pleasing given the significant price deflation experienced in flat panel TVs and the decline in games which was driven by the lower sales of Nintendo Wii, Nintendo DS and Sony PSP off the strong growth last year,” said Smart in a statement to the Australian Securities Exchange.

“Sales since the start of January have remained tight as high levels of discounting and the impact of price deflation continued. Whilst we anticipate a volatile and competitive market in the second half, we are confident that the JB model can deliver another record year of sales and earnings.”

JB Hi-Fi opened 10 stores in Australia in the first half and 3 in New Zealand; comparable store sales growth for the period was negative 1.5 per cent. A further five stores are in the pipe line to open in Australia in the second half.

The company also reported that whilst online sales still represented a small segment of the business, online sales grew by 35 per cent in the half year and were up 49 per cent in December.

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