JB Hi-Fi sales rise as COVID-19 spurs need for remote work

Retail margins remained tight, but JB Hi-Fi achieved growth in NZ in the year to 30 June, 2019.

JB Hi-Fi has seen a spike in total sales over the past three months as the coronavirus pandemic sees Australians rushing to set up home offices.

The hardware and electrical retailer saw growth of 9.1 per cent growth overall in the period from 1 January to 22 March, and 8.8 per cent year-on-year in Australia during the period.

Meanwhile its sister company The Good Guys also saw 10.4 per cent sales growth, both in total and comparably.

However, the picture was less pretty for JB Hi-Fi New Zealand, which declined 2 per cent in both total and comparable respects during the period.

"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 to and prepare for Covid-19," the publicly listed company told shareholders.

As well as products for remote working, JB Hi-Fi also saw a spike in demand for learning and communication tools, plus home appliances for food storage and preparation.

Nevertheless, the company flagged the current uncertainty in the market and withdrew its previously announced FY20 sales and earnings guidance. However, it claimed its balance sheet was strong and it had headroom in its facilities.