JB Hi-Fi (ASX:JBH)
has unveiled a $250 million off market buyback after posting weaker overall sales for the half year ending December last year.
The electronics retail giant posted a 1.6 per cent fall in sales to $4.9 billion despite soaring online sales, while net profit fell 9.4 per cent to $287.9 million. The company declared a reduced interim dividend of $1.63 a share compared to $1.80 last year.
On a brighter note, the company is off to a strong second half with elevated demand across all their sales channels.
"We continued to see elevated demand across all of our sales channels, particularly online which our customers seamlessly transitioned to during the various lockdowns demonstrating the strength and trust in our brands,” said chief executive officer Terry Smart.
The company said the off market buyback is the most efficient and value enhancing mechanism to distribute surplus capital and franking credits.
“While it remains an uncertain retail environment, we will continue to stay focused on what we can control. Our highly engaging in-store and online shopping experiences delivered by our passionate and knowledgeable team members, and our continued focus on leveraging our scale to deliver great value will ensure we meet our customers’ needs during these challenging times.”
Shares in JB Hi-Fi (ASX:JBH)
are trading 6.7 per cent higher at $52.35.