The JB Hi-Fi Limited (ASX: JBH) share price is trouncing the broader market on Tuesday following the release of its preliminary first-half results.
Around midday, shares in the retailing powerhouse are 0.4% stronger than yesterday at $47.29 apiece. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is swimming in the red with a 0.12% downward move today.
Earlier today, JB Hi-Fi shares reached an 8-month high of $49.72. Excitement is swirling around the company amid a shockingly good set of numbers. Unsurprisingly, the retailer is one of the best-performing shares in the index today.
What is bolstering the JB Hi-Fi share price today?
The market might have expected a weak result from one of Australia's most prominent retailers. After all, the COVID-19-induced shopping frenzy has mostly fizzled out, inflation has increased costs, and interest rate rises have stifled consumer spending.
Despite all the headwinds, JB Hi-Fi revealed record sales and earnings in the first half of FY23. Preliminary results show group sales increasing 8.6% year-over-year to $5,278.5 million. Even sweeter, net profit after tax (NPAT) surged 14.6% to $329.9 million.
According to the release, the stupendous figures were a byproduct of continued elevated customer demand for consumer electronics and home appliances. Additionally, management attributed 'well-executed' Black Friday and Boxing Day promotions as contributors to the blockbuster result.
Breaking it down
Picking apart the metrics, the largest increase in sales came from the company's New Zealand operations — increasing 16.1% year-on-year. However, in terms of earnings before interest and tax (EBIT), JB Hi-Fi's New Zealand EBIT fell 26.5% — the worst of the bunch.
This didn't impact the group's overall EBIT growth due to most of the company's EBIT being derived from its Australian operations. The Aussie segment's pre-tax earnings jumped by 16.7% to $341.3 million during the half.
The JB Hi-Fi share price is up nearly 14% since the start of 2023. Signs of inflation possibly easing has spurred on a renewed taste for ASX retail shares as the outlook starts to turn more optimistic.
