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.
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?
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.
For Money Morning
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