JBH is Australasia’s fastest growing and largest retailer of home entertainment, and boasts one of the best low-cost business models in the retail sector.
Yet despite its growth, JBH has been one of the shares to sell in recent months as it contends with a soaring Aussie dollar and the growth of online retailing.
Today, JBH reported a 7.6% drop in FY11 net profit to $109.7 million. A final dividend of 77 cents was declared.
The result was impacted by a $24.7 million write-down of its Clive Anthony stores, with underlying earnings actually rising 13.3% to $134.4 million.
Sales increased 8.3% despite challenging trading conditions, which JBH expects to persist into FY12.
Despite the uncertain outlook, JBH was anticipating 16 new stores to be opened in FY12 and sales to be 8% higher than the FY11.
The solid result has limited the falls in JBH’s share price today, with the stock so far outperforming the Australian share market.