JB Hi-Fi Australia has recorded sales growth of 20% for the five months to 31 May 2020, with The Good Guys sales increasing 23.5% during the period.
JB Hi-Fi New Zealand sales dropped 19.3% due to temporary store closures, as a result of level four government restrictions. Full trading has now resumed, and initial sales performance has been solid. However, the group is reviewing the carrying value of certain JB Hi-Fi New Zealand assets, given its ongoing challenging performance and expected uncertainty in New Zealand. This is expected to result in a non-cash impairment of circa $25 million in FY20.
For the year to date to 31 May 2020, JB Hi-Fi Australia total sales are up 11% and comparable sales have risen 10.7%. Over at The Good Guys, total sales growth was 10.7% and comparable sales increased 10.3%.
JB Hi-Fi group CEO, Richard Murray acknowledged the significant contribution of the group’s team members. “I would like to thank our 12,000 team members who have done an incredible job in meeting the extraordinary challenges faced over the past few months.”
He added: “Our customers have continued to turn to us for their technology and home appliance needs and our team members have responded and adapted in an amazing manner to make sure we can do it safely and effectively.”
Given strong trading performance in April and May and assuming no significant changes to trading performance in June, the group provided an earnings guidance for full year FY20 with total sales expected to be circa $7.86 billion.
Total net profit after tax (NPAT) after the New Zealand impairment is expected to be in the range of $300 million and $305 million, an increase of 20% to 22% on the prior comparable period.