JB Hi-Fi (ASX: JBH) Lifts FY26 Profit and Dividend as July Sales Soften

JB Hi-Fi reported record annual sales and higher earnings, while its July update showed softer trading across three Australian businesses.

Group sales rose 4.8% to $11.06 billion for the year ended June 30, 2026. Statutory net profit attributable to owners increased 6% to $489.9 million.

Against the prior underlying result, net profit rose 2.9%. That comparison excludes a $13.7 million FY25 expense linked to resolved ACCC proceedings against The Good Guys.

Dividend Steps Higher

The board declared a fully franked final dividend of 127 cents per share. That was 22 cents, or 21%, above the previous final dividend.

Total ordinary dividends reached 337 cents per share, up 22.5%. The payout represented 75% of net profit attributable to owners.

The final dividend has an August 28 record date and is payable on September 11. The increase followed the board’s decision to lift its payout range to 70%–80% of net profit.

Basic earnings per share increased 5.9% to 448.1 cents on a statutory basis. It rose 2.9% against the prior underlying result.

Divisions Tell Different Stories

JB Hi-Fi Australia remained the largest earnings contributor. Sales advanced 4.4% to $7.42 billion, while comparable sales increased 3.2%.

Its earnings before interest and tax rose 3.2% to $547.3 million. However, the division’s EBIT margin narrowed nine basis points to 7.38%.

The Good Guys increased sales 2.7% to $2.94 billion. EBIT rose 6% to $184 million, with its margin improving 19 basis points to 6.25%.

New Zealand delivered the strongest growth. Sales jumped 26% to NZ$499.5 million, while comparable sales increased 15.3%.

The division generated NZ$4.1 million of EBIT after recording a NZ$0.2 million loss in FY25. Its store network reached 26 locations.

By contrast, e&s recorded a $0.4 million EBIT loss. Full-year comparative sales declined 0.2%, while comparable sales fell 3.2%.

Cash Absorbed by Inventory

Operating cash flow eased to $701.2 million from $711.6 million. Free cash flow fell to $403.4 million from $430.2 million.

Inventory increased 4.5% to $1.36 billion. JB Hi-Fi bought stock earlier to secure supply and get ahead of supplier price rises.

That decision lifted net working capital by $85.2 million to $160.8 million. Net cash remained positive at $206.5 million, with no borrowings reported.

July Exposes Uneven Demand

The first month of FY27 showed weaker Australian trading. JB Hi-Fi Australia’s July sales declined 0.5%, with comparable sales down 1.4%.

The Good Guys fell 1.7% on both measures. e&s sales declined 2.7%, while comparable sales dropped 4%.

New Zealand remained the exception. July sales rose 20.9%, with comparable growth of 11.7%.

Management said customers were concentrating spending around major promotions. Supplier price increases and limited technology stock also continued to affect sales growth.