JB Hi-Fi hikes dividend, says consumers still spending despite slowdown fears

Electronics retailer JB Hi-Fi says customers have still been opening their wallets over the past month despite fears of a consumer slowdown, giving the company a strong start to the 2023 financial year after a record 2022.

JB Hi-Fi investors will pocket a final dividend of $1.53 this year, taking the full-year payout up 10.1 per cent to $3.16, after the retailer reported a $544.9 million profit off $9.2 billion in revenue.

JB Hi-Fi surprised the market last month when it revealed it was expecting record sales figures.

When reporting its full-year numbers on Monday morning, the company revealed that Australian sales had stayed strong throughout the month of July, up 9.7 per cent with comparable sales growth of 9.2 per cent.

The company’s whitegoods brand The Good Guys saw growth of 7.8 per cent in July, though the company’s New Zealand sales were down by close to 1 per cent.

JB Hi-Fi chief executive Terry Smart acknowledged cost of living pressures were still to be felt, but said the brand was well-placed as it started the new financial year.

“As we enter an increasingly uncertain retail environment and household budgets come under further pressure, customers will gravitate to trusted value-driven retailers,” he said.

“Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.”

Inflationary pressures have also been hitting business operations across the board, but the company highlighted on Monday morning that while its “cost of doing business” was up 21 basis points, it was still only 11.4 per cent.