JB Hi-Fi (ASX:JBH) share price up amid ‘confident’ outlook for FY22

Despite confidence from the company’s chair and CEO for a fruitful FY22, JB Hi-Fi has refused to give guidance
The post JB Hi-Fi (ASX:JBH) share price up amid ‘confident’ outlook for FY22 appeared first on The Motley Fool Australia. –

The JB Hi-Fi Limited (ASX: JBH) share price is gaining today amid the release of the company’s annual report detailing its chair and CEO’s positivity toward FY22 following a “strong year” and despite “ongoing uncertainty”.

Within the report, the electronics and consumer goods retailer looked back on a financial year in which it achieved record earnings despite the challenges posed by COVID-19. However, the company is seemingly reluctant to say if the current financial year is expected to be so productive.

Right now, the JB Hi-Fi share price is $44.97, 0.29% higher than its previous close.

Let’s look at how financial year 2021 (FY21) played out for JB Hi-Fi and what it expects to achieve in FY22.

No guidance despite strong FY21 and confidence for FY22

The JB Hi-Fi share price is in the green today. Meanwhile, the retailing megalith, which operates both JB Hi-Fi and The Good Guys stores, has released its overview of the financial year just been.

The company’s chair, Stephen Goddard, and its newly instated CEO, Terry Smart, noted FY21 was a challenge for the retailer. However, its business model saw it performing better than ever before.

The pair said the company continued to meet demand despite ongoing challenges posed by the pandemic. They put FY21’s successes down to the company’s continued focus on its customers and competitive advantage from its multichannel offerings.

Over FY21, consumer demand for JB Hi-Fi and The Good Guys products increased. Meanwhile, the retailers took orders online, over the phone, and, when possible, in store.

As JB Hi-Fi reported in its financial year 2021 earnings, the company achieved record profits over the financial year just been. The JB Hi-Fi share price gained 2.5% on the back of its FY21 results, released on 16 August.

Over the current financial year, JB Hi-Fi will be focusing on improving its online stores. The company’s online segments received $780 million in sales last financial year.

It will also be innovating and diversifying its product offerings, supply chains, merchandising formats, and advertising and property locations. Goddard and Smart believe this approach will bring opportunities to increase revenue, margin, and productivity.

However, despite the productive plan, the company has continued to decline giving investors an outlook for financial year 2022. This was said to be due to the uncertainty facing the retail sector.

Instead, Goddard and Smart commented they have “confidence in the outlook for the business [and] look forward to another successful year in FY22”.

JB Hi-Fi share price snapshot

Despite JB Hi-Fi’s “strong” FY21, the company’s share price has been struggling.

It has fallen 10% since the start of 2021. It is also 5% lower than it was this time last year.

The post JB Hi-Fi (ASX:JBH) share price up amid ‘confident’ outlook for FY22 appeared first on The Motley Fool Australia.

Should you invest $1,000 in JB Hi-Fi right now?

Before you consider JB Hi-Fi, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and JB Hi-Fi wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The JB Hi-Fi (ASX:JBH) share price is down 9% in a month. Is it a buy?
Got money to invest for dividends? Here are 2 ASX shares that could be buys

5 things to watch on the ASX 200 on Friday

How have ASX retail shares performed during the August 2021 earnings season?

Why the JB Hi-Fi (ASX:JBH) share price is edging lower today

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!