JB Hi-Fi has reported a 19.9% decline in net profit after tax (NPAT) to $264.3 million for the six months to 31 December 2023. Total sales were down 2.2% to $5.16 billion compared to the previous corresponding half.

JB Hi-Fi Group CEO, Terry Smart said the performance was reflective of cycling elevated customer demand in the prior year.

“As expected, we saw the trading environment become more challenging, marked by heightened competitive activity and increased on-floor discounting. Our focus remains on maximising customer demand through consistently high levels of customer service and driving best value for our customers,” he said.

JB Hi-Fi Australia recorded a 0.7% increase in total sales to $3.62 billion supported by strong Black Friday and Boxing Day promotional periods. Online sales increased by 0.8% to $543.1 million or 15% of total sales.

New mobile phone releases from Apple, Google and Samsung, improved stock availability of PlayStation and Xbox gaming hardware, floorcare and personal care in the small appliances category, were among the key growth categories.

Total sales for JB Hi-Fi New Zealand increased 5.1% to NZD168.7 million driven by gaming hardware, headphones, portable speakers, mobile phones, small appliances and IT accessories such as keyboards and mice. Online sales increased 5.8% to NZD20.4 million or 12.1% of total sales.

The Good Guys reported a 9.9% decrease in total sales to $1.39 billion with comparable sales also down 9.9%. Resilience in home appliance categories was offset by softer sales in consumer electronics. Online sales were down 2.3% to $192.7 million or 13.9% of total sales.

In a trading update for January 2024, total sales for JB Hi-Fi Australia increased 2.5% with comparable sales growth of 1.7%. JB Hi-Fi New Zealand saw sales growth of 8.2% with comparable sales down 4.1%, and total sales at The Good Guys declined 2.2% with comparable sales also down 2.2%.

“In a challenging retail environment, we continue to adapt and innovate to maximise the opportunities it gives us,” Smart said.

“Our unwavering focus on delivering value for our customers by leveraging our established and proven low-price market position and providing exceptional customer service continues to ensure we remain top of mind for shoppers. This strategy not only ensures our continued relevance to our loyal existing customers but also drives the expansion of our market share.”