Company Reports

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership in the consumer electronics industry after the demise of smaller players and, more recently, major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

JB Hi-Fi's group sales increased 5% in fiscal 2026 to AUD 11.1 billion. Underlying EBIT margins fell slightly, driving operating earnings growth of 4%. Its Australian sales momentum slowed significantly in the June quarter and into early fiscal 2027. Shares dropped 12%.

JB Hi-Fi's sales momentum is moderating as shoppers tighten their belts. In the March quarter, sales at its largest Australian chains, JB Hi-Fi and The Good Guys, grew 4% and 3% year on year, respectively. In the December quarter of 2025, sales were up 7% and 5%, respectively. Shares fell 6%.

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership in the consumer electronics industry after the demise of smaller players and, more recently, major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

JB Hi-Fi's group sales were up 7% in the first half of fiscal 2026. Operating income increased 8% with EBIT margins improving in the group's major Australian chains, JB Hi-Fi and The Good Guys. The fully franked dividend increased by 24% year on year on a higher payout ratio. Shares rallied 7%.

Harvey Norman said at its AGM that sales momentum is holding up. Harvey Norman's and JB Hi-Fi's core Australian businesses are enjoying solid demand for consumer electronics and home appliances. Sales are increasing by midsingle digits at Harvey Norman and JB Hi-Fi in fiscal 2026 year-to-date.

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership in the consumer electronics industry after the demise of smaller players and, more recently, major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

JB Hi-Fi stores in Australia and New Zealand saw solid sales growth in the first quarter of fiscal 2026, up 6% and 39%, respectively. However, sales growth at home appliances specialist The Good Guys was relatively weak, at merely 3%.

JB Hi-Fi's fiscal 2025 underlying net profit after tax increased 9% to AUD 476 million. Solid trading conditions across all segments drove a 10% increase in group sales, marginally sweetened by the small E&S acquisition. CEO Terry Smart announced that he will retire in October.

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership in the consumer electronics industry after the demise of smaller players and, more recently, major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

Household incomes are growing in real terms after a period of rampant inflation. With inflation back within the Reserve Bank of Australia’s target range, the focus is shifting to keeping the job market in good shape. Monetary settings are slightly restrictive, providing room for more easing.

Tariffs are softening Australian consumer sentiment and investors are preferring defensives over cyclical retailers. Since sweeping US tariffs were announced April 2, our Morningstar Australia Consumer Defensive Index is up 3%, but the Morningstar Australia Consumer Cyclical Index is flat.

Global markets have been rattled by US President Donald Trump's "liberation day" tariffs. Trump has raised tariff rates to levels not seen in a century, which will likely set in motion a cascade of supply-demand side shocks, all acting to weigh on the rate of economic growth.

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership within the consumer electronics industry, after the demise of smaller players, and more recently of major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

JB Hi-Fi's sales growth is outperforming. Rising Australian household incomes, market share gains, and a bolt-on acquisition supported group 10% sales growth in first half fiscal 2025. However, earnings growth lagged. Net profit after tax increased by 8% to AUD 285 million on first half fiscal 2024.

Australian consumer sentiment is gradually improving. The pressure on household budgets is slowly easing with lower inflation and stabilizing real incomes. Shoppers are more optimistic about the economic outlook and believe further interest-rate hikes are off the table.

Trading momentum for nonessential goods is picking up. So far in fiscal 2025, sales growth is improving at Super Retail’s chains and Woolworths’ Big W discount department stores, as well as at electronics goods retailers JB Hi-Fi, Harvey Norman, and Kogan.

JB Hi-Fi is one of Australia's largest retailers, having built a strong brand and market leadership within the consumer electronics industry, after the demise of smaller players, and more recently of major competitor Dick Smith Electronics. Australians have been quick to adopt the latest technology during the past decade, thanks largely to high employment and low interest rates.

JB Hi-Fi’s trading momentum keeps on improving—beating our prior expectations. Its Australian sales grew in the June 2024 quarter compared with the previous corresponding period. This is the first time Australian quarterly sales increased on the PCP since December 2022. On average, no-moat JB Hi-Fi is outperforming its peers. According to the Australian Bureau of Statistics, retailing sales of electrical and electronic goods declined by 1% in the June 2024 quarter. We calculate JB Hi-Fi’s Australian sales increased by 3%—a delta of 4 percentage points.

The upcoming August 2024 reporting season will draw the line under a difficult year for Australian retailers in which they navigated soft demand and soaring labor costs. The combination results in a profit margin crunch and declining earnings for many retailers.