JB Hi-Fi Group has entered into an agreement to acquire a majority stake in E. & S. Trading Co. (Discounts), known as "e&s", initially picking up a 75% stake for $47.8 million. The news came as the retailer reported flat sales in its full-year report of $9.59 billion in the full-year to 30 June 2024.

E&S, established in 1962, is a provider of premium kitchen, laundry, and bathroom products. The company operates 10 showrooms in Victoria and online, with another showroom set to open in ACT in August 2024. E&S reported revenue of approximately $230 million in FY24, with a normalised pre AASB16 EBITDA of about $7 million.

"E&s is a high-quality business that prides itself on offering the world's leading kitchen, laundry and bathroom brands at great prices, with expert advice and exceptional customer service," said Terry Smart, JB Hi-Fi Group CEO. "E&s has a highly complementary premium product offering, which will appeal to a new customer base, and a commercial construction market focus, making it a strategically compelling addition to the JB Hi-Fi Group."

The acquisition will be funded through existing cash reserves and is expected to be completed in September 2024. Rob Sinclair will continue as the Managing Director of e&s post-acquisition.

JB Hi-Fi began its extension out of consumer electronics and into the home with its acquisition of The Good Guys for $870 million in 2016.

The acquisition news comes as JB Hi-Fi Group reported flat sales of $9.6 billion in its full-year report, with EBIT of $647.2 million and net profits of $438.8 million. Total JB Hi-Fi sales in Australia increased 1% to $6.61 billion, with comparable sales up 0.6% - a figure driven by a well-executed Black Friday sales, Boxing Day and Tax Time promotional periods. Within this, key categories included mobile phones, small appliances, cameras, games hardware and services.

The retailer also noted online sales increased 2.8% to $1.03bn, representing 15.5% of total sales. Gross profits dipped slightly by 0.9% to $1.47 billion, a figure that reflected higher than usual discounting and promotional offers.

In The Good Guys business, total sales were down 4.8% to $2.68bn, with comparable sales down by the same ratio. Although home appliance was resilient as a category, gross profit was also down due to discounting. EBIT dropped 25.8% to $158.1m.

"We are pleased to report our FY24 results, with sales remaining solid thanks to the strength of each brand's core categories," said Smart. "In this tough retail environment where customers are seeking value, our brands continue to resonate strongly driven by the trust customers have in our low-price best value proposition."

Smart said it was also pleasing to see sales momentum in Australia continue into July.

"We remain committed to offering the best value and exceptional customer service to maximise our brands sales opportunities," he said.

In its FY24 Sustainability Report, JB Hi-Fi highlighted progress in areas such as women in leadership positions, safety programs, new e-waste facilities, and solar power investments.

"As always, the results are a credit to our over 15,000 team members whose support and commitment ensure the ongoing success of the business. We will remain focused on our customer's needs and continue to innovate as we navigate another uncertain year," concluded Smart.