The JB Hi-Fi Limited (ASX: JBH) share price is up 4%. It just reached an all-time high.
Despite experiencing booming sales during the first two years of COVID-19 in 2020 and 2021, sales have continued to grow for the business.
The company just released a FY22 trading update for the third quarter to date.
What was in the JB Hi-Fi sales update?
For the period of 1 January 2022 to 23 March 2022, the company said that all three of its divisions experienced sales growth.
JB Hi-Fi Australia's total sales were up 11.3%, with comparable sales growth of 10.5%.
In New Zealand dollar terms, JB Hi-Fi New Zealand's total and comparable sales were up 2.9%.
The Good Guys total sales increased by 5.7%, while comparable sales grew by 5.1%.
Profit margin growth
Not only did the ASX retail share reveal sales growth, but it also talked of improved operating leverage.
Management said that the sales growth, combined with disciplined cost control, stock availability, sales mix benefits and gross profit margin improvement, led to strong operating leverage across the group.
The company said that it was "pleased" with the start to the second half.
More growth to come for the JB Hi-Fi share price?
Multiple brokers like JB Hi-Fi at the moment.
Ord Minnett is one of the brokers that rates the business as a buy, with a price target of $62, implying a further upside of at least 10%. The broker thinks that sales and margins can keep rising.
At the current JB Hi-Fi share price, Ord Minnett thinks it's valued at 13x FY22's estimated earnings with a potential grossed-up dividend yield of 6.8%.
