JB Hi-Fi (ASX: JBH): Is This the Consumer Stock Proving Retail Can Still Outperform?
Consumer discretionary stocks have had a mixed run, but JB Hi-Fi is showing that strong fundamentals can still lead the way. In a softer retail environment, the company delivered a 9.8 percent increase in total sales for the first half of FY25, reaching $5.67 billion.
Net profit rose 8.0 percent year on year to $285.4 million, and the interim dividend increased by 7.6 percent to 170 cents per share. These results show a retailer not just managing the cycle, but outperforming within it.
JB Hi-Fi Australia led the charge with $3.88 billion in sales, up 7.2 percent. Online sales grew 16.4 percent to $682.7 million. The Good Guys also contributed, delivering a 9.2 percent rise in sales.
- Group EBIT reached $419.9 million, an increase of 8.6 percent
- Online now makes up 12 percent of total sales
- New Zealand sales jumped 20 percent and returned to profit
- Net cash on hand stood at $555.1 million
A strategic highlight was the acquisition of 75 percent of e&s, a premium appliance retailer. This positions JB Hi-Fi to tap into higher-value categories with greater margin potential.
Strong cost control helped maintain margins, with Australian EBIT margin steady at 8.2 percent. In New Zealand, margin improvements led to a positive EBIT result.
For investors looking at consumer stocks this quarter, JB Hi-Fi offers a rare mix of scale, consistency and growth. It is not just holding ground. It is moving ahead with purpose.
Temple & Webster (ASX: TPW): Is This the ASX Retailer in fact Winning the Online Game?
Temple & Webster has been quietly outperforming in a category where many expected weakness. While others pulled back, this online homewares and furniture player posted its strongest half-year results to date.
Revenue for the first half of FY25 reached $313.7 million, up 24 percent from the prior year. Net profit after tax jumped 118 percent to $9.0 million. EBITDA rose to $13.2 million, an increase of 76 percent. Free cash flow also surged 61 percent to $32.5 million.
- Active customer base reached 1.2 million
- Average revenue per active customer climbed to $470
- Exclusive products made up 45 percent of total sales
- Cash position increased to $139 million with no debt on the balance sheet
Temple & Webster’s efficiency is being driven by more than just sales volume. Over 60 percent of customer care conversations are now handled by AI, reducing customer service costs by 55 percent. The company is also scaling its home improvement category, which saw 41 percent growth year on year.
Exclusive ranges are a key part of the company’s margin strategy. At the same time, increased branded search volume suggests the platform is becoming a preferred choice for Australian shoppers.
With no physical stores and strong repeat business, Temple & Webster is redefining what an online-first retailer can look like.
For investors watching the consumer discretionary space, this is one stock showing that digital scale and brand trust can still drive strong growth.
(Source: Company Announcements)
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