JB Hi-Fi Limited (ASX: JBH), established in 1974 and based in Chadstone, Australia, together with its subsidiaries, operates as a retailer of home consumer products. The Group comprises two leading retail brands, JB Hi-Fi is focussed on technology and consumer electronics, and The Good Guys covers home appliances and consumer electronics.
The value proposition for each brand centres around ranging the brands at low prices supported by exceptional customer service across a 311-store network, online and through their commercial channels. There are around 196 JB HI-FI stores in Australia, 14 JB HI-FI stores in New Zealand, and a total of 105 stores of The Good Guys.
The Group has recently released the 2019 Macquarie Australia Conference Presentation, comprising the FY19 sales update so far and the outlook for 2019, the descriptions of the Group Model, the FY19 key focus areas update as well as FY20 key focus areas, and lastly an investment checklist.
According to the Easter adjusted results for the third quarter of 2019 (Q3 FY19 Sales Update) ended March 31st, 2019, the JB HI-FI Australia segment recorded a growth of 2.6% in the total sales (Q3 FY18: 7.5%) with comparable sales growth of 1.5% (Q3 FY18: 4.3%). Besides, the YTD FY19 total sales growth was 4.1% (YTD FY18: 9.8%) with comparable sales growth of 2.7% (YTD FY18: 6.7%).
For JB HI-FI New Zealand, the total sales growth was -1.2% (Q3 FY18: -4.4%) with comparable sales growth of 4.6% (Q3 FY18: -0.6%). The YTD FY19 total sales growth for the segment was 3.7% (YTD FY18: -1.7%).
The Good Guys segment reported total sales growth of 2.2% for the period (Q3 FY18: -1.3%) with comparable sales growth of 1.0% (Q3 FY18: -2.9%).
The Group reaffirmed its guidance for FY19, estimating that the total Group sales would be circa $ 7.1 billion comprising, $ 4.73 billion for JB HI-FI Australia; $ 0.24 billion for JB HI-FI New Zealand (NZD); and $ 2.15 billion for The Good Guys. Besides, the Total Group NPAT is expected to be in the range of $ 237 million - $ 245 million, an increase of 1.6% to 5.1% on the prior corresponding period (pcp).
According to JB Hi-Fi, the Group’s business model is underpinned by five key enablers that provide a unique competitive advantage. These include scale, low cost operating model, quality store locations, supplier partnerships and multichannel capability.
During the first nine months of 2019, the company focussed on establishing a Group Merchandise function; promoted improved customer experience delivered through a cost effective, fit for purpose supply chain solution (review completed in December 2018, validation of review initiatives underway); and brought together the JB Hi-Fi and The Good Guys support offices to a joint location in Southbank, Melbourne in April 2019.
Going forward into the next financial year FY20, the group intends to implement a group wide entry level television offer, enhance supplier engagement and strengthen supplier partnerships, consolidate brand data and drive market insights. besides, a proof of concept trial of consolidated big and bulky home delivery centres will also be conducted along with building of brand awareness and tools to support growth.
The Group also released its financial results for the half-year ended December 31st, 2018 in February 2019.
On April 30th, 2019, the JBH stock is trending at AUD 25.90, up 0.116% by AUD 0.030 during the market trading session at 02:49 PM AEST. JBH’s YTD return also stands positive at 19.77%. Moreover, the Group has an annual dividend yield of 5.3%, as reported by ASX.