JB Hi-Fi forecasts 20% annual profit jump

JB Hi-Fi forecasts 20% annual profit jump

Expects 2020 sales of around $7.86 billion.

Credit: JB Hi-Fi

JB Hi-Fi Australia has forecast annual profit to rise 20-22 per cent, supported by a jump in sales at its domestic stores through the coronavirus pandemic.

The upbeat view comes as most of the company's stores in Australia were open through a virus-enforced lockdown and as its online offering prospered.

JB Hi-Fi now expects 2020 adjusted net profit after tax to be between $300-$305 million and sales of around $7.86 billion.

It had earlier forecast profit of between $265-$270 million on revenue of $7.33 billion, before withdrawing the guidance amid uncertainty created by the pandemic.

The firm said comparable sales at its JB Hi-Fi Australia stores surged 20 per cent in the second-half to date, while those at The Good Guys - the home appliances-focused chain it acquired in 2016 - climbed 23.5 per cent.

Analysts at Citi had estimated that like-for-like sales at Victoria-headquartered JB Hi-Fi could grow 30 per cent or more in the fourth quarter.

The announcement follows a similarly bullish update from rival Harvey Norman on Wednesday.

JB Hi-Fi added that while its stores in New Zealand were now open, it would review parts of the business, which would result in a post-tax, non-cash impairment of about $25 million for the full year.

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Himani Sarkar and Stephen Coates)

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