The JB Hi-Fi Limited (ASX: JBH) share price has taken today off as the company announced strong sales in the first half of FY21. Shares in the retailing giant are currently trading 3.05% higher at a price of $52.32.
It has been a great 6 months for the retailer, which has outpaced the S&P/ASX 200 Index (ASX: XJO) by 13%.
Strong sales momentum
JB Hi-Fi reported strong sales throughout the first half, as elevated customer demand continued for electronics and home appliance products. This, combined with growth in online sales that were up 161.7% to $678.8 million, helped to offset the government-mandated temporary store closures due to COVID-19.
In terms of the company's group sales, The Good Guys delivered the strongest sales across the board, up 26.4%. As a whole, the group grew sales by 23.7% in the first half, reaching a record value of $4,941.2 million.
Moreover, gross margins were well managed, leading to strong improvements in key categories. This was underpinned by The Good Guys, but offset by sales mix in JB Hi-Fi Australia and New Zealand.
As a result of good cost control combined with the strong growth in sales, operating leverage received a meaningful boost. What's more, the group did not receive any government wage subsidies and continued to pay landlords and team members throughout the half, including the periods where stores were temporarily closed.
Comments from the CEO
JB Hi-Fi CEO Richard Murray, welcomed the strong results, saying:
We are pleased to report record sales and earnings for HY21, in what has been an extraordinary period. Our continued focus on the customer, and investments in our online business and our supply chain, have enabled us to seamlessly meet our customers' increased demand both instore and online.
The CEO went on to thank the company's 13,000 employees, saying they have "continued to do an incredible job and worked tirelessly throughout this period".
The JB Hi-Fi share price is trading strongly on the news today. Its half year audited results are due for release on 15 February.
