JB Hi-Fi beats odds with big-ticket retail growth

JB Hi-Fi's New Zealand division has reported sales growth of 20% in the first half of the 2025 financial year. Photo / Greg Bowker

JB Hi-Fi has reported strong growth in big-ticket item sales in the first half of the financial year, bucking the trend seen across the retail industry in New Zealand.

The brand’s New Zealand division reported total revenue growth of 20% to $202.5 million, up from $168.7m in the first half of 2024. It reported the largest regional growth of JB Hi-Fi’s whole group.

Gross profit for the half also grew substantially, up 22.4% compared to HY24 to $34.5m, with the division’s gross margin up 33 basis points (bps) to 17%.

JB Hi-Fi New Zealand’s earnings before interest and tax (ebit) grew to $2.2m, up from the $400,000 loss in HY24.

Key growth categories over the half were big-ticket items, including mobile phones, computers, cameras, audio and small appliances.

Software sales (ie. music, movies and games) represented just 5.3% of total sales, down from 6.2% in HY24.

The brand also reported large growth in online sales compared to HY24, up from 12.1% to 58.4%, equating to $32.4m or 16% of total sales.

One area of focus for the New Zealand division over the half was cost control, reducing its cost-of-doing-business (CODB) by 13.8%, down by 137bps. In absolute terms, it grew by 9.2%.

The reduction in CODB is crucial for JB Hi-Fi plans, with the New Zealand expansion set to continue.

The group is targeting five new stores across the financial year, with two stores already opened in the first half.

Looking at the first four weeks of the second half of the financial year, JB Hi-Fi New Zealand has continued its form with total sales growth of 20.4% for the month of January, up from 8.2% in 2024.

Comparable sales grew by 10% in January 2025, up from the -4.1% growth last year.

JB Hi-Fi’s wider group performance including its Australian operation, and appliance outlets The Good Guys and e&s, also reported strong total sales growth, up by 9.8% to A$5.67 billion ($6.2b).

The group reported an ebit of AU$419.9m ($565.6m), up $33.2m or 8.6%.

It had a net profit after tax for HY25 of $285.4m, up by $21.1m or 8%.

Earnings per share of JB Hi-Fi grew 8% to 261.1 cents per share, and it will deliver an interim dividend of 170 cps.

Bounce back

The result will be positive news for the local division after it reported a net loss after tax of $6.8m for the 2024 financial year.

The ASX-listed company reported revenue for the year ended June 30, 2024 of $327.9m, up from $292.1m in 2023.

According to the company, the key growth categories in FY24 were mobile phones, audio, games hardware, IT and small appliances.

Online sales also substantially grew by 32.4% to $42.6m for the year, now contributing to 13% of total sales.

However, the business reported an underlying loss before interest and tax of $2.3m, down $6.7m year-on-year.

New investments for the business seem to have driven the result, after launching five new stores across the country, including three standard format stores and two international airport stores.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.