Australian Electronics Retailer JB Hi-Fi Reports 20% Decline in Half-Year Net Profit
Australian electronics retailer JB Hi-Fi has announced a 20% drop in its net profit for the first half of the fiscal year, citing reduced consumer spending on discretionary items due to inflationary pressures.
JB Hi-Fi, with over 300 stores in Australia and New Zealand, reported a net profit of AUD 264.3 million (USD 172.2 million) for the six months ending in December, down from AUD 330 million last year. This result surpassed market expectations of AUD 238 million for half-year net profit, as stated by FactSet.
The company’s half-year sales also decreased by 2% to AUD 5.16 billion, slightly above market forecasts of AUD 5.14 billion, according to FactSet. JB Hi-Fi acknowledged that the competitive landscape intensified during the period, resulting in increased on-floor discounts.
JB Hi-Fi’s interim dividend of 158 Australian cents per share was declared, compared to 197 Australian cents per share in the previous year.
Analyst comment
Negative news. Analyst: JB Hi-Fi’s profit decline and decrease in sales indicate a challenging market environment with reduced consumer spending. Competition is intensifying, leading to increased on-floor discounts. The company’s interim dividend payout has also decreased. Market may expect a difficult period ahead for JB Hi-Fi.
