Consumer technology retail giant JB Hi-Fi has withdrawn its previously announced sales and earnings guidance for FY2020 due to growing uncertainty brought by the Coronavirus pandemic.
Earlier this year, JB Hi-Fi posted guidance of group sales of $7.33 billion for FY2020, with net profit after tax of between $265 million and $270 million.
The company also assured shareholders that its balance sheet “remains strong” and the company has “significant headroom” in its facilities and covenants.
The decision comes despite the company being “pleased” with its performance to date, specifically with total sales growth across JB Hi-Fi and The Good Guys stores.
From 1 January 2020 to 22 March 2020, JB Hi-Fi Australia saw its sales grow 9.1 percent, with comparable sales growth of 8.8 percent. JB Hi-Fi New Zealand meanwhile saw sales decline 2 percent. Total sales growth from The Good Guys came in at 10.4 percent.
“The company continued to see strong momentum in Australia through the quarter, with an acceleration in recent weeks as both JB Hi-Fi and The Good Guys provided retail and commercial customers with the essential products they need to respond and to prepare for COVID-19, including technology products that enable remote working, learning and communication, and essential home appliances for food storage and preparation,” an ASX announcement read.
JB Hi-Fi also revealed how it is dealing with the ongoing outbreak to protect the health and safety of all people who visit its premises. Some measures include:
- Additional and intensive cleaning of all stores, offices and distribution centres;
- Customer store traffic management processes;
- Social distancing practices in high-traffic areas such as counter queues;
- Encouraging cashless transactions;
- Restricting travel and meetings; and
- Adopting flexible working arrangements
“The company will continue to evolve its actions, processes and operations and take account of guidance provided by the relevant authorities,” the announcement read.
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