JB Hi-Fi Share Price Up on Impressive Earnings (ASX:JBH)

JB Hi-Fi Ltd [ASX:JBH], one of Australia’s leading retailers of electronic goods, announced its full-year results recently, with the company recording significant growth.

The JBH share price was trading at $49.95 at the time of writing, JB Hi-Fi not only clawed back its losses from the start of the COVID-19 pandemic, but now has surpassed its most recent all-time high.

ASX JBH share price chart 1

Source: Optuma


What’s been happening at JB Hi-Fi?

Back in February 2020, JB Hi-Fi had been trading at an all-time high of $46.09. Then disaster struck in the form of COVID-19, sending the price tumbling down 54.89% into the March low.

While the fall in stock price may have worried some, there was a massive shift in people’s shopping habits as many were forced to stay home and/or work from home.

For JB Hi-Fi, this put a rocket under its online sales, with total online sales across the group growing by 48.8% to $597.5 million, representing 7.5% of total sales, with Q4 sales up 134.3%

Overall, this boosted the company massively:

  • Sales up 11.6% to $7.9 billion
  • Underlying EBIT up 30.5% to $486.5 million
  • Dividend per share up 47 cents per share or 33.1% to 189 cents per share

These results become even more impressive when considering JB Hi-Fi doesn’t give customers access to popular payment facilities, such as those provided by Afterpay Ltd [ASX:APT] or Zip Co Ltd. [ASX:Z1P].

With the pandemic still ongoing and the state of Victoria currently in stage four lockdown, foot traffic to the usual brick-and-mortar stores is down.

But this is being balanced by a significant acceleration in online sales in Victoria in the first 11 days following the stage four temporary store closures.

Where to from here for JB Hi-Fi’s share price?

ASX JBH - JB Hi-Fi share price chart 2

Source: Optuma


With the share price trading at $49.95 at the time of writing, this pushed through the resistance level of $49.50. Should the momentum continue and push through further, then the levels of $53 and $56 may provide future resistance.

If price is to turn and retrace, the previous all-time high level of $46 or $43 may be enough to halt the decline.


Carl Wittkopp,
For Money Morning

PS: Four well-positioned small-cap stocks: These innovative Aussie companies are well-placed to capitalise on post-lockdown megatrends, and two are growing players in Australian e-commerce. Click here to learn more.

Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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