JB Hi-Fi (JBH) H1 2026 earnings summary

Executive summary

• Record half-year sales of $6.09 billion, up 7.3% year-over-year, with EBIT up 8.1% to $454 million and NPAT up 7.1% to $305.8 million, driven by both in-store and online growth.

• Multi-brand, multi-channel strategy with JB Hi-Fi, The Good Guys, and E&S, each targeting distinct market segments; all major brands delivered sales and EBIT growth except E&S, which saw EBIT decline due to strategic investments.

• Interim dividend increased 23.5% to 210 cents per share, fully franked, representing 75% of NPAT, with a record date of 27 February 2026.

• Focus on value, customer service, operational efficiency, and continued investment in people, sustainability, and community impact.

Financial highlights

• Group gross margin rose to 22.31% (+19 bps), with cost of doing business at 12.63%.

• EBIT up 8.1% to $454 million; NPAT up 7.1% to $305.8 million; EPS up 7.1% to 279.7 cents per share.

• Free cash flow was $457 million, with net cash of $489.5 million at period end.

• Inventory increased 6.7% to $1.41 billion, in line with sales growth; inventory turnover at 6.93 times.

• Dividend payout ratio increased to 70-80% of NPAT from FY26.

Outlook and guidance

• January 2026 sales update: JB Hi-Fi Australia up 4%, New Zealand up 26.4%, The Good Guys up 2.7%, E&S down 4.6%.

• Management remains cautious due to retail market uncertainty, competitive activity, and consumer spending risks.

• Focus areas include supply chain optimization, retail execution, brand expansion, and multichannel growth.

• Expectation of continued momentum in mobile phones, computers, small appliances, and health/fitness categories.

• Anticipated price increases in PCs due to memory and storage costs, with strategies to maintain price points and gross margin.