The JB Hi-Fi Limited (ASX: JBH) share price is charging higher on Thursday morning.
At the time of writing, the retail giant's shares are up 4% to $52.76.
Image source: Getty Images
Why is the JB Hi-Fi share price charging higher?
Investors have been bidding the JB Hi-Fi share price higher today after the retailer released an update on its sales performance during the second half.
According to the release, for the period 1 January to 23 March 2022, the company continued to see heightened customer demand and strong sales growth.
The JB Hi-Fi Australia business was the star of the show, with comparable store sales up 10.5% during the period. This led to total JB Hi-Fi Australia sales growing 11.3% quarter to date. This means that total JB Hi-Fi Australia sales year to date are now up 1.5%.
It was a similar story for The Good Guys business, which reported a 5.1% increase in comparable store sales and a 5.7% lift in total sales. This has taken its year to date sales growth to 1%.
Another positive was the improving performance of the JB Hi-Fi New Zealand business. After posting sales declines during the first half, it has bounced back and has delivered a 2.9% lift in comparable store sales and total sales so far in the third quarter. As a result, the JB Hi-Fi New Zealand business' sales are now down 2.5% year to date.
What about profits?
While JB Hi-Fi hasn't provided any earnings estimates for the period, it has revealed that operating leverage has been achieved.
Management commented: "This sales growth, combined with disciplined cost control, and stock availability and sales mix benefits in gross margins, particularly in The Good Guys, drove strong operating leverage across the Group."
But with trading conditions remaining hard to predict, management won't be providing any guidance at this point.
It advised: "Whilst the Group is pleased with the start to the second half, in view of the ongoing disruption arising from Covid-19 and other local and global uncertainties, the Group does not currently consider it appropriate to provide FY22 sales and earnings guidance."
