JB Hi-Fi reported record full-year sales of $11.06 billion for FY26, alongside earnings growth that demonstrates the group’s ability to navigate a challenging retail environment. Net profit after tax reached $489.9 million, up 6.0% on a statutory basis, while the company announced a total ordinary dividend of 337.0 cents per share, representing a 22.5% increase from the prior year and 75% of reported earnings. This significant capital return signals management confidence in the group’s earnings trajectory and cash generation capability.
The earnings performance reflects underlying operational momentum rather than one-off items, with statutory EBIT up 5.8% to $734.4 million and underlying EBIT up 3.8% when excluding the FY25 ACCC settlement charge. Comparable sales growth of 3.2% in the Australian core business demonstrates customer resilience, with strength across technology categories including computers, mobile phones and fitness equipment. Online penetration in Australia reached 17.2% of total sales, growing at 7.0%, which highlights the ongoing shift toward digital channels while maintaining a competitive store network.
The standout performance came from JB Hi-Fi New Zealand, where sales surged 26.0% to NZD499.5 million with comparable sales growth of 15.3%. Online sales jumped 36.7%, indicating strong customer adoption of the brand in that market and substantial runway for continued expansion. The Good Guys division, operating within a softer home appliance market, still posted sales growth of 2.7% and held comparable sales flat, reflecting market share gains despite sector headwinds.
Gross margins declined modestly, with the Australian business recording 21.94% margin, down 5 basis points, driven primarily by product mix changes. Cost of doing business in Australia remained disciplined at 12.46%, up just 4 basis points, demonstrating leverage even as the company invested in new store openings and strategic initiatives. The New Zealand operation showed margin expansion of 41 basis points and cost discipline, with CODB down 106 basis points as the business scales, a pattern investors should monitor for potential margin accretion as growth continues.
For investors, the results reflect a well-managed retailer generating solid single-digit sales growth while maintaining profitability in an environment where consumers remain value-conscious. The dividend increase to 337.0 cents per share, combined with underlying EBIT growth, supports the case for the group’s earnings sustainability. Investors should watch the trajectory of online growth, the margin progression in the New Zealand business, and The Good Guys’ ability to stabilize in a weaker appliance market. This announcement is classified as price sensitive and flagged as material by the ASX.
View the full ASX announcement (PDF)
About JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi Limited is a consumer electronics and home appliances retailer operating in Australia and New Zealand through its JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys store brands. The company sells computers, tablets, mobile phones, gaming devices, audio equipment, home appliances, and related accessories. It was founded in 1974 and is headquartered in Southbank, Australia.
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