JB Hi-Fi reports record sales in challenging environment

JB Hi-Fi is looking to its commercial operations to position the household brand for future growth, after reporting revenue of $9.63 billion for the year ending June 30, 2023.

Is commercial business includes IT services units JB Hi-Fi Business and JB Hi-Fi Education.

In the retailer’s FY2023 results released today, JB Hi-Fi said it is continuing to invest in its commercial unit’s e-commerce platform, including integrating legacy platforms and enabling self-service transactions.

The unit is also continuing to expand its product range, integrating with supplier catalogues, improve stock availability and quotation times, as well as improve online order fulfilment, order tracking and integration with store click-and-collect.

JB Hi-Fi also lists the commercial unit as one of its business risks, saying the investments the company is making comes amid the three brands not delivering their expected growth outcomes.

The overall JB Hi-Fi business however reported revenue of $9.63 billion for the 12 months ending 30 June 2023, up 4.3 percent year over year.

Net profit after tax however was down 3.7 percent to $524.6 million.

“We are pleased to report record sales and earnings per share for FY23,” JB Hi-Fi group chief executive Terry Smart said.

“In a challenging retail environment, we remained top of mind for shoppers and grew our market share by continuing to drive our value offering, leveraging the strength of our multichannel offer and maintaining our high levels of customer service.”

The Australian business hauled in $6.55 billion, an 5.6 percent year over year increase, with growth coming from communications, audio, accessories, games hardware and services.

Online revenue took a hit, declining a substantial 20.9 percent to $940 million for the period, accounting for 14.4 percent of total revenue.

“With the heightened uncertainty in the retail environment, both our brands remain well positioned to leverage their low-price market position as shoppers look to maximise value from their purchases," Smart added.

"As we have continued to demonstrate, we will adapt and respond to the changing retail conditions to ensure we remain the number one destination for shoppers and grow our market share.”

“As always, we are thankful to our over 14,500 team members whose continued focus on delivering value and maintaining our high levels of customer service will ensure the long-term sustainability of the business," Smart said.