JB Hi-Fi exceeded analysts' expectations by scoring its most sales ever.
👉 Background: JB Hi-Fi is the beloved electronics and home appliances retailer and a cool place to hang out if you’re a teenager who’s into ‘alternative music’. JB launched in 1975 and has grown to over 200 stores across Australia and New Zealand.
👉 What happened: JB's business scored its most sales ever in the last financial year at $9.2 billion. That's 5% more than analysts were expecting.
👉 What else: This crew’s net profits also came in more than 30% higher than expected. So how did JB manage to beat analysts’ expectations? Well, apparently it had a really strong June. In fact, like-for-like sales climbed 11% in its Aussie division that month.
💡Like-for-like sales is a financial metric used to measure how companies are growing from one period to the next.
💡For example, things like a big expansion or an acquisition could artificially inflate a company’s sales numbers. Like-for-like sales can also give us a good idea of whether a company's existing stores are doing well, or whether it’s the newbies that are driving the growth.
💡 So, retailers like JB often report like-for-like sales to give a little bit more insight into what’s going on under the hood.
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