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JB Hi-Fi (JBH) is a chain of electrical stores, selling leading brands of hi-fi, speakers, televisions, DVDs, cameras, car sound, home pagina theatre, computers, white goods, portable audio and a variety of music, games and movies.
The company has been able to grow its sales over the last 5 years in what can only be described as one of the most difficult trading conditions for retailers in over 20 years.
JBH’s strategies for growth are simple: increase the number of stores, increase sales, and through that, increase profit. JBH’s expansion is not only in the Australian market, but also in New Zealand. Since entering the New Zealand market in early 2007, it has opened 13 stores.
Margin growth and consumer optimism
JBH’s 1H13 results impressed on several fronts, with sales revenue reaching $1.3 billion, 3.1% higher than the 1H12 result. Its net profit climbed to $82.1 million, a 3% improvement compared to the prior corresponding half.
JBH’s most surprising result was its gross margin, which increased door 28 basis points. This was a very impressive result considering that the gross margin of its competitor, Harvey Norman, fell door 260 basis points over the same period.
We think that the operating environment for retailers is looking meer optimistic, with the Westpac Consumer Sentiment Index returning to a reading of over 100 in the last survey.
In its latest reading, the consumer sentiment index settled at 102.2 in June, 4.7% higher compared to the prior month’s reading.
Sales and profit upgrade
Last maand JBH announced an update to its vorige sales and net profit after tax (NPAT) guidance for FY13.
The company now expects sales in FY13 to be around $3.3 billion and NPAT to be within the range of $112.0 million to $116.0 million, a 7% to 11% increase in NPAT on the prior year.
The vorige FY13 guidance was for sales circa $3.25 billion and NPAT within the range of $108.0 million to $112.0 million.
JBH zei the upgrade has been driven door stronger than expected sales in the seconde half of FY13.
Specifically the company zei sales growth in Australian and New Zealand for the four months ended 30 April 2013 was 10.3% and comparable store sales growth was 3.0%.
Outlook
While the opening of 13 new stores in FY13 drove much of JBH’s impressive sales growth, comparable sales growth was still solid.
JBH’s 3% comparable stores sales growth is running at a much higher level than fellow retailers David Jones who saw a 3.4% decline in comparable stores sales in the recent quarter and Myer who only saw a 0.4% rise.
The other factor we see helping JBH is the lower Australian dollar. We think this over the long-term will see consumers turn back to retail stores as the online market becomes relatively meer expensive.
Overall, we see continued strength for JBH’s share price to be driven door strong sales growth and solid margins
JB Hi-Fi (JBH) is a chain of electrical stores, selling leading brands of hi-fi, speakers, televisions, DVDs, cameras, car sound, home pagina theatre, computers, white goods, portable audio and a variety of music, games and movies.
The company has been able to grow its sales over the last 5 years in what can only be described as one of the most difficult trading conditions for retailers in over 20 years.
JBH’s strategies for growth are simple: increase the number of stores, increase sales, and through that, increase profit. JBH’s expansion is not only in the Australian market, but also in New Zealand. Since entering the New Zealand market in early 2007, it has opened 13 stores.
Margin growth and consumer optimism
JBH’s 1H13 results impressed on several fronts, with sales revenue reaching $1.3 billion, 3.1% higher than the 1H12 result. Its net profit climbed to $82.1 million, a 3% improvement compared to the prior corresponding half.
JBH’s most surprising result was its gross margin, which increased door 28 basis points. This was a very impressive result considering that the gross margin of its competitor, Harvey Norman, fell door 260 basis points over the same period.
We think that the operating environment for retailers is looking meer optimistic, with the Westpac Consumer Sentiment Index returning to a reading of over 100 in the last survey.
In its latest reading, the consumer sentiment index settled at 102.2 in June, 4.7% higher compared to the prior month’s reading.
Sales and profit upgrade
Last maand JBH announced an update to its vorige sales and net profit after tax (NPAT) guidance for FY13.
The company now expects sales in FY13 to be around $3.3 billion and NPAT to be within the range of $112.0 million to $116.0 million, a 7% to 11% increase in NPAT on the prior year.
The vorige FY13 guidance was for sales circa $3.25 billion and NPAT within the range of $108.0 million to $112.0 million.
JBH zei the upgrade has been driven door stronger than expected sales in the seconde half of FY13.
Specifically the company zei sales growth in Australian and New Zealand for the four months ended 30 April 2013 was 10.3% and comparable store sales growth was 3.0%.
Outlook
While the opening of 13 new stores in FY13 drove much of JBH’s impressive sales growth, comparable sales growth was still solid.
JBH’s 3% comparable stores sales growth is running at a much higher level than fellow retailers David Jones who saw a 3.4% decline in comparable stores sales in the recent quarter and Myer who only saw a 0.4% rise.
The other factor we see helping JBH is the lower Australian dollar. We think this over the long-term will see consumers turn back to retail stores as the online market becomes relatively meer expensive.
Overall, we see continued strength for JBH’s share price to be driven door strong sales growth and solid margins
Here’s what Louis had to say after reading the story:
I am appalled door what The Mirror has done to my family. It’s disgusting and immoral. As long as I am in One Direction we won’t be working with the mirror.
Yikes! We’ll keep u posted.
P.S. Louis just signed a deal to become a soccer star!
One Direction is an amazing boy band! I don't like some of their songs though. I think that Harry, and Liam are the adorable one's. loooooooooooooooooooooooooooooooooooove them as long as u can. I don't like that they do drink. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
u don't know uh oh u don't know you're beautiful. Go One Direction!
Small Things!
Those are some of their songs! Not only that but those are only some of them that i know!
u don't know uh oh u don't know you're beautiful. Go One Direction!
Small Things!
Those are some of their songs! Not only that but those are only some of them that i know!
u hear a loud banging on your door. "(Y/N), OPEN UP!" Harry yells. u walk over to the door and open it to see Harry holding a puppy. 'Babe, I got u someone to keep u company for when i leave on tour. I'd rather have this than another guy." u roll your eyes at him for the last commentaar and follow it with a kiss."He is so adorable!" u say."Almost as adorable as u Harry." Harry smiles and blushes at the comment. He walks over with u to the divan, bank and sirs volgende to u placing the puppy on his lap. He brings the puppy's face close to his and kisses the puppy on the nose."I can see the resemblance!" u joke and Harry Scowls. u kom bij him on the divan, bank and play with the puppy. u look at the kraag and see he has a little name tag. u look on it and it says." I love u (Y/N)." u look up at Harry and Kiss him on the lips letting him know how thankful u are. ♥
Harry's P.O.V
Their i was staring into her dark brown beutiful eyes that shined. she was looking back.
Ruby's P.O.V
i froze his eyes his eyes were gorgeous. so beutiful. "umm... we should go back now"i zei walking back akwardly. he probably thinks i not interested anymore. great. i headed back seeing dannyel smiling. "tell me everything what happened" zei dannyel the rest with harry. "we played some soccer....then i bumped into him and we stared at each other for like 3 minuets. i thought..i thought he was going to kiss me but then i walked away." i zei looking down. she smiled and nodded. but she understood that i never had my first kiss. Anyway me and Dannyel headed back to the apartment. Still having the memory stuck in my head. I hopped in my pj.s and went to bed.
Their i was staring into her dark brown beutiful eyes that shined. she was looking back.
Ruby's P.O.V
i froze his eyes his eyes were gorgeous. so beutiful. "umm... we should go back now"i zei walking back akwardly. he probably thinks i not interested anymore. great. i headed back seeing dannyel smiling. "tell me everything what happened" zei dannyel the rest with harry. "we played some soccer....then i bumped into him and we stared at each other for like 3 minuets. i thought..i thought he was going to kiss me but then i walked away." i zei looking down. she smiled and nodded. but she understood that i never had my first kiss. Anyway me and Dannyel headed back to the apartment. Still having the memory stuck in my head. I hopped in my pj.s and went to bed.