JB-Hi Fi shares slump despite Q3 sales matching market forecasts
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More news: Shares in JB-Hi-Fi tumbled in afternoon trade despite the technology retailer posting a 4% increase in total Australian sales, which met market expectations.
Shares were down 7.45% to $72.07 at 12:13pm AEST.
RBC Capital Markets analyst Michael Toner noted that while the company flagged potential headwinds for the remainder of the year, its outlook is typically cautious in nature.
He holds a sector perform rating with a price target of $92.
JB Hi-Fi posts 4% increase in Q3 sales, flags stock shortages and competitive issues
The news: Electronics retailer JB-Hi Fi reported a 4% increase in total sales for its Australian division during the March quarter.
The numbers: In the third quarter, total sales growth in New Zealand saw a 23.2% increase, while The Good Guys sales rose 2.5% compared to the prior corresponding period. However, total sales for e&s recorded a 1.4% decrease.
The context: Group CEO Nick Wells stated that although the company is navigating an increasingly uncertain retail environment, he still sees continued sales growth across JB Hi-Fi and The Good Guys.
However he noted that the technology sector is experiencing significant supplier component related cost increases and stock shortages as well as heightened competition.
What they said: “As always, we will remain focused on what we can control and seek to maximise demand through driving great value for our customers, leveraging our strong supplier relationships, and delivering exceptional customer service,” Wells said.
The sources: ASX, RBC Markets analyst note
