- Tech retailer JB Hi-Fi (JBH) is one of the few companies cashing in from the COVID-19 crisis
- Sales growth has increased by almost 10 per cent over this quarter compared to the year before
- The company claims the boost in demand comes from the nationwide shift to at-home work
- With products like laptops, tablet, and entertainment systems, JB Hi-Fi is providing the goods people need to stay home
- However, the company admitted the immediate future still looks uncertain
- As such, JB Hi-Fi scrapped its earnings guidance despite the increased sales
- Shares in JB Hi-Fi are trading just under three per cent down today at $23.89 each
Consumer tech retailer JB Hi-Fi (JBH) has seen a surge in sales over the past month as consumers prepare to work from home.
With the COVID-19 pandemic continuing to spread, offices across Australia are turning to remote work to stay productive as they stay safe.
While retailers do not have the luxury of operating remotely, the shift to at-home work has brought about a bump in demand for the products JB Hi-FI has on offer, like computer monitors, keyboards, laptops and tablets. Further, for those self-quarantining but not able to work, JB Hi-Fi’s entertainment range has a lot to give.
In Australia, the tech giant increased sales by 8.8 per cent from January 1 to March 22, compared to the same time last year. The Good Guys, JB Hi-Fi’s home appliance subsidiary, increased sales by 10.4 per cent over this period compared to the year before.
“The company continued to see strong momentum in Australia through the quarter, with an acceleration in recent weeks as both JB HI-FI and The Good Guys provided retail and commercial customers with the essential products they need to respond to and prepare for COVID-19,” the company said in an announcement to shareholders yesterday.
However, despite the demand spike, JB Hi-Fi said the coming months bring with them a deal of uncertainty.
As such, the company has made the call to scrap its earnings guidance for the 2020 financial year until things stabilise in the economy.
Regardless, JB Hi-Fi said it has a strong balance sheet and “significant headroom” in its facilities as COVID-19 rages on.
Still, it seems investors are more concerned about the future of business operations than this quarter’s healthy boost in sales. Following the wider market, JB Hi-Fi shares lost 7.32 per cent yesterday as investors remain uncertain about whether or not retail stores will stay open under government regulations.
Today, shares are red once more and trading 2.93 per cent lower at $23.89 each. JB Hi-Fi shares hit their all-time high on February 10 when they closed worth $44.71 each.