Farhan Badami, market analyst at eToro Group Ltd, shares his three things to watch in Australia in the coming days.
JB Hi-Fi earnings
JB Hi-Fi’s FY25 results gave investors plenty to cheer about, with total sales surging 10% to $10.56 billion, driven by resilient demand in consumer electronics and appliances despite a softer retail backdrop. EBIT climbed 7.3% to $694.1 million, while NPAT rose 5.4% to $462.4 million. EPS matched that growth, up 5.4% to 423 cents.
Shareholders will pocket a fully franked final dividend of 105 cents, taking the full-year payout to 275 cents, plus a surprise 100-cent special dividend — a clear sign the retailer is flush with cash and confident in its balance sheet.
JB Hi-Fi’s performance stands out in an otherwise cautious consumer environment. While many retailers have battled margin pressure from higher costs and weaker discretionary spending, JB Hi-Fi has leaned on brand strength, pricing discipline and a diversified product mix to keep sales momentum alive. Underlying EBIT rose 9.4%, underscoring operational efficiency.
Online sales climbed double digits, showing the business can adapt to shifting consumer behaviour while still leveraging its strong store network. The acquisition of premium home appliance retailer e&s also adds a new growth lever, particularly in the commercial segment.
The results were accompanied by a leadership change, with long-serving CEO Terry Smart set to retire in October after steering the group to record sales, profits and share price highs. His successor, current COO and former CFO Nick Wells, has been with JB Hi-Fi since 2009 and is expected to maintain strategic continuity while putting his own stamp on the business.
For income-focused investors, the fully franked yield boosted by the special dividend is compelling, while growth investors may question how much more upside remains after such a strong run.
With high interest rates still squeezing household budgets but potential RBA cuts on the horizon, JB Hi-Fi’s value positioning and tight cost control could see the tills ring even louder in FY26.
RBA interest rate decision
The RBA’s decision to keep rates paused in July seemed to take everyone by surprise. However, the meeting minutes revealed that the decision, though not unanimous, was based largely on caution ahead of the next quarterly CPI reading.
We now have those quarterly figures and a 25bps cut this Tuesday is broadly priced in. In fact, seven banks have already slashed their interest rates in anticipation of a cut. ANZ, on the other hand, has increased the rate on its ANZ Plus variable home loan for new customers, breaking rank with expectations.
While the July pause was a surprise, a consecutive pause in August will be a shock. Three cuts before the end of the year are still expected, but there’s very little wiggle room left in the calendar if the RBA heightens its degree of risk aversion any further.
AU unemployment rate
Last month’s jump in unemployment from 4.1% to 4.3% led to wide criticism that the RBA’s rate pause was something of a policy error. The growing concern around jobs figures comes as the growing issue of poor productivity casts a long shadow over Prime Minister Albanese’s upcoming Economic Reform Roundtable.
In the lead-up to that roundtable, key business figures have asserted that Australia’s corporate tax structure is hurting the ever-important productivity metric, while the Federal Government hopes to spend much of the time focusing on issues outside of taxation, such as cutting red tape and boosting developmental approvals. Short term? Not much is likely to change without a consensus.
Recent analysis by Australian Industry Group further complicates the productivity and employment puzzle. According to the analysis, 82 per cent of new roles in the last two years were government-funded positions, possibly skewing key metrics that influence the central bank's vital policy calls.
Fresh unemployment figures this Thursday will likely reinforce concerns about the Australian jobs market. After winning an election on, among other things, a good track record of job creation, the pressure is on for Labor to drive tangible outcomes from its roundtable discussions.