JB Hi-Fi singles out computers and telco as key sales drivers
- 09 August, 2010 09:09
ASX-listed retailer JB Hi-Fi (ASX:JBH) has indicated computers, telecommunications and accessories as key drivers for its store sales growth.
JB reported 26 per cent jump in net profit to a record $118.7 million and a 17 per cent increase in sales totalling $2.7 billion for the financial year ending June 30.
Consolidated comparable store sales growth was 4.8 per cent driven by computers, telecommunications, accessories and visual, and the maturity of recently opened stores. In July, it signed an exclusivity deal with Dell for its PC range.
Gross margin was 21.8% (FY09: 21.6%), a good result considering the continued competitive environment, the company said. Cost of doing business was down at 14.5% (FY09: 14.7%) both contributing to a 31 bps increase in EBIT margin to 6.4% (FY09: 6.1%). Cash flow from operations was strong at $152.1 million for the full year.
“We are pleased with this solid result, especially given we were cycling against strong prior year growth driven by the government stimulus packages and low interest rates,” JB Hi-Fi CEO, Terry Smart, said.
During FY10, the retailer opened 23 new stores, and claims it was largest number of openings in a year so far.
“These stores, together with the maturing of the 39 stores opened over the previous two financial years will continue to drive solid revenue and earnings growth,” the retailer said in a statement to the ASX.
It expects to launch 18 new outlets in FY11 across Australia and New Zealand. In total, it has 141 stores, 131 in Australia and 10 in New Zealand, and had a target to open at least 13 to 15 stores per annum.
The retailer anticipates FY11 sales growth will be challenging due to subdued consumer spending, but strives to take advantage of the busy Christmas trading period. It is forecasting sales for FY11 will increase 17 per cent to $3.2 billion.