Why the JB Hi-Fi (ASX:JBH) share price is on watch today

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The JB Hi-Fi Limited (ASX: JBH) share price is on watch today after the electronic goods retailer released its sales update and preliminary unaudited financial results for the 2021 financial year (FY21).

We take a look at these below.

What financial results did JB Hi-Fi report?

The JB Hi-Fi share price will be one to keep an eye on after the company reported record sales and earnings for FY21.

According to the release, continuing increased customer demand for consumer electronics and home appliance products helped drive a 12.6% increase in total sales to $8.9 billion, up from $7.9 billion in FY20.

Demonstrating the growing shift to online shopping, JB Hi-Fi reported a 78.1% year-on-year increase in online shopping sales. Online sales reached $1.1 billion, or 11.9% of total sales.

Earnings before interest and taxes (EBIT) increased 53.8% compared to the prior financial year, to $743.2 million. Net profit after tax (NPAT) came in at $506.1 million, up 67.4% from the 302.3 million reported for FY20.

Commenting on the results, group CEO Richard Murray said:

We are pleased to report record sales and earnings for FY21. 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…

[O]ur team members are our number one asset and our most important competitive advantage; their dedication and deep product knowledge continue to delight our customers every day.

With the new round of lockdowns hitting Victoria and New South Wales, JB Hi-Fi cautioned that it expected “some disruption and variability to sales”, citing store closures in both states. The company said it will update the market on July sales when it reports its full 2021 financial year results on 16 August.

JB Hi-Fi share price snapshot

The JB Hi-Fi share price has been on a bit of a rollercoaster over the past 12 months, currently up 11% since this time last year. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 21%.

Year to date, JB Hi-Fi shares are down 4%.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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