JB Hi-Fi Limited has reaffirmed its profit guidance for FY19, despite slower sales growth in its JB Hi-Fi Australia business, thanks to faster growth in New Zealand and The Good Guys in Q3.
The consumer electronics retailer expects FY19 total group sales to be around $7.1 billion and NPAT to be up between 1.6 per cent and 5.1 per cent on the previous corresponding period in the range of $237 million to $245 million, which is in line with previous expectations.
JB Hi-Fi Australia’s total sales growth was 2.6 per cent in Q3, down from 7.5 per cent growth in the previous corresponding period, and its comparable sales growth was 1.5 per cent, down from 4.3 per cent in the previous corresponding period.
Year-to-date total sales growth was 4.1 per cent, compared to 9.8 per cent sales growth for the same period in FY18, while comparable sales growth for the year to date was 2.7 per cent, down from 6.7 per cent for the same period in FY18.
This slow growth was offset by improvements in the retailer’s New Zealand business and The Good Guys.
JB Hi-Fi New Zealand’s total sales growth was -1.2 per cent in Q3, an improvement from the -4.4 per cent sales growth in the previous corresponding period, and comparable sales growth was 4.6 per cent, up from -0.6 per cent in the previous corresponding period.
The Good Guys’ total sales growth was 2.2 per cent in Q3, up from -1.3 per cent in the previous corresponding period, with comparable sales growth of 1.0 per cent, up from -2.9 per cent in the previous corresponding period.
Speaking at Macquarie’s conference, JB Hi-Fi CEO Richard Murray said he was pleased with the result for the March quarter, as it came in a tough trading environment.
He said that the retailer is looking to services, e-commerce, targeted offers and productivity improvements to grow in FY20.
This includes migrating to a new e-commerce platform, Shopify Plus, which is currently in testing, and rolling out television installation services nationally, after a successful trial earlier this year.
