Home format helps growth.

JB Hi-Fi has beaten the expectations of analysts with its financial results reported today for the financial year to the end of June 2016.

JB Hi-Fi CEO Richard Murray announced that sales rose 8.3 per cent over the financial year to $3.95 billion, with sales in the second half up 8.9 per cent showing a potential contribution from the demise of the Dick Smith stores.

The business reported like for like sales growth of 5.4 per cent for the full year and 5.5 per cent for the second half.

Net profit of $152.2 million was 11.5 per cent up on the year prior, which Murray said was “driven by strong earnings and a solid balance sheet”.

He said solid growth through the refurbishment of stores including the roll out of small appliances and the Home format as well as strong growth from online and JB Hi-Fi solutions business.

JB store

Murray also shared some unique thoughts about “where the business was at, and what we are excited about as well as the opportunities and challenges as we look ahead”.

“Our objective is to create an engaging and entertaining shopping experience which delights customers with authentic, honest and knowledgeable service by providing the best products at great prices. We do this by maintaining our strong and unique culture which is a competitive advantage. We recognise and reward our people. We want JB to be a great place to work which reflects how we deal with our customers. At our heart we are a sales-driven organisation. Today we achieve this through growth from existing stores, new stores, online and JB Hi-Fi Solutions.

“Our focus in on driving GP dollars with the belief that you maintain customer equity by delivering great value even if it hurts sometimes because you might like to make some margin, but it is better to maintain that customer equity

“Our diversification across product categories assists us to manage the issue of gross margin but that is an outcome. To support our price promise, we maintain a low cost of doing business which is best in class both at in store at the support office.

“Core to our DNA is our ability to bring our brands to life and create engagement in categories. Our reputation for price leadership and taking the deal is at our core. We pride ourselves at being first to market with emerging technology. This market leadership reinforces to our customers and vendors JB is a destination for new products and emerging categories.

“The model is underpinned by our convenient and high foot traffic locations where we deliver exceptional customer service from our passionate and knowledgeable staff. This drives a high level of loyalty and trust from our customers which was recognised by AMR in their 2016 Corporate Reputation Index where we were ranked number one in Australia. We are delighted and humbled by this recognition and pleased with being ranked in the top three companies in Australia for the last five years.”