The Kiwi arm of Aussie-owned electronics retailer has reported [pdf] a mere 0,3 per cent sales growth in its full year 2022 results, taking the total to A$261.6 million (NZ$289.9 million).
Sales at JB Hi-Fi New Zealand dipped by 6.4 per cent in the first quarter of the retailer's first 2022 quarter, and 3.4 per cent in the second quarter.
However, sales rebounded in the third quarter with a 4.8 per cent increase, and 7.7 per cent in the fourth quarter of FY2022, as the retailer's 14 stores were able to open for business again.
On the upside, earnings before income tax jumped a whopping 51.7 per cent for JB Hi-Fi, with the margin growing by 114 base points to 3.37 per cent compared to 2.23 per cent in 2021.
Nevertheless, underlying EBIT fell by 22.1 per cent to A$4.7 million from A$6.7 million.
Online sales in New Zealand were a bright spot for JB Hi-Fi, increasing 56.7 per cent to NZ$43.4 million, which represents 16.6 per cent of the total.
Tim Edwards appointed managing director
JB Hi-Fi said Noel Leeming veteran Tim Edwards has joined the retailer as managing director for New Zealand.
Furthermore, JB Hi-Fi said it has completed a strategic review of the New Zealand business, and intends to refresh its store network, along with a website re-platforming to Shopify.
More stores are also on the cards for New Zealand, along with staff hires and development.
Sales growth in Australia for JB Hi-Fi took a 7.5 per cent dive in the first quarter of the FY2022, but headed into the positive territory for the next three quarters.
Overall, Australia recorded four per cent sales growth for FY2022, hitting A$6,196.5 million.
Hardware and services sales in the communications, visual, small appliances, smart homes and accessories categories drove the strong sales growth, but software sales were down, the company said.
Earnings stood at A$545 million, up from A$523 million.
Across the Tasman, JB Hi-Fi has split its commercial business and IT services arm JB Hi-Fi Solutions to three new brands as the company aims to grow the unit.
In an ASX announcement released today, JB Hi-Fi said JB Hi-Fi Solutions is being “repositioned” to operate under the brands JB Hi-Fi Business, JB Hi-Fi Education and The Good Guys Commercial.
The company also announced a new e-commerce platform aimed at improving the customer experience from onboarding to order fulfilment, and reaching more small to medium business customers.
Story updated to clarify that Tim Edwards has been appointed the managing director of JB Hi-Fi NZ. We regret the error.