JD Group said on Thursday (20 February) that its\u00a0consumer electronics and appliances business, which includes Incredible Connection and HiFi Corp, experienced challenging operating conditions for the six months ended December 2013.<\/p>\n
JD Group pointed to\u00a0reduced customer spending which resulted in a reduction in merchandise sales of 13.3% for the division.<\/p>\n
Gross margins were, however, successfully increased as a result of more conservative\u00a0product discounting practices, it said.<\/p>\n
“The consolidation of the back-office functions of the two brands resulted in successfully reducing operating expenses during the period,” JD group said.<\/p>\n
Overall, revenue increased by 4.3% to R17.1 billion, but the group reported a headline loss per share of 59.1 cents compared to headline earnings per share of 234.4 cents for 1H2013.<\/p>\n
JD Group suspended its dividend, as it lifted its cash pile set aside to cover customers’ unpaid debts.<\/p>\n
Looking ahead,\u00a0JD group said its consumer electronics & appliances division should continue to perform well.<\/p>\n
Price deflation hurts Incredible Connection<\/strong><\/a><\/p>\n