The JB Hi-Fi Limited (ASX: JBH) share price is gaining today amid the release of the company's annual report detailing its chair and CEO's positivity toward FY22 following a "strong year" and despite "ongoing uncertainty".
Within the report, the electronics and consumer goods retailer looked back on a financial year in which it achieved record earnings despite the challenges posed by COVID-19. However, the company is seemingly reluctant to say if the current financial year is expected to be so productive.
Right now, the JB Hi-Fi share price is $44.97, 0.29% higher than its previous close.
Let's look at how financial year 2021 (FY21) played out for JB Hi-Fi and what it expects to achieve in FY22.
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No guidance despite strong FY21 and confidence for FY22
The JB Hi-Fi share price is in the green today. Meanwhile, the retailing megalith, which operates both JB Hi-Fi and The Good Guys stores, has released its overview of the financial year just been.
The company's chair, Stephen Goddard, and its newly instated CEO, Terry Smart, noted FY21 was a challenge for the retailer. However, its business model saw it performing better than ever before.
The pair said the company continued to meet demand despite ongoing challenges posed by the pandemic. They put FY21's successes down to the company's continued focus on its customers and competitive advantage from its multichannel offerings.
Over FY21, consumer demand for JB Hi-Fi and The Good Guys products increased. Meanwhile, the retailers took orders online, over the phone, and, when possible, in store.
As JB Hi-Fi reported in its financial year 2021 earnings, the company achieved record profits over the financial year just been. The JB Hi-Fi share price gained 2.5% on the back of its FY21 results, released on 16 August.
Over the current financial year, JB Hi-Fi will be focusing on improving its online stores. The company's online segments received $780 million in sales last financial year.
It will also be innovating and diversifying its product offerings, supply chains, merchandising formats, and advertising and property locations. Goddard and Smart believe this approach will bring opportunities to increase revenue, margin, and productivity.
However, despite the productive plan, the company has continued to decline giving investors an outlook for financial year 2022. This was said to be due to the uncertainty facing the retail sector.
Instead, Goddard and Smart commented they have "confidence in the outlook for the business [and] look forward to another successful year in FY22".
JB Hi-Fi share price snapshot
Despite JB Hi-Fi's "strong" FY21, the company's share price has been struggling.
It has fallen 10% since the start of 2021. It is also 5% lower than it was this time last year.
