JB Hi-Fi shares slide after sales slip
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More news: Shares in JB Hi-Fi dropped nearly 6% to $56.40 in the first hour of trade after the consumer electronics giant reported lower sales at its Australian stores.
E&P Capital analysts said JB Hi-Fi' Australia's comparable sales growth rates were weaker than they expected but in-line for The Good Guys.
Total sales were down 0.3% on a comparable basis, while appliances chain The Good Guys saw a 0.8% drop. The retailer said the performance was in line with expectations and sales remained resilient amid a challenging and competitive retail market.
JB Hi-Fi sales slip in March quarter
The news: Consumer electronics giant JB Hi-Fi has reported a drop in third quarter sales in its main Australian business amid challenging retail conditions.
The numbers: Total sales at its Australian electronics stores were down 0.1% for the quarter, and down 0.3% on a comparable basis. Sales were also down 0.8% at appliances retailer The Good Guys. However, sales jumped 16.8% at its New Zealand electronics stores, and 2.9% on a comparable basis.
The context: The retailer said the performance was in line with expectations and the group’s third quarter sales remained resilient in a challenging and competitive retail market.
JB Hi-Fi CEO Terry Smart had warned in February that sales were trending softer at its Australian electronics stores and that the retail environment had become challenging. The group’s trusted value-based offerings and high levels of customer service continue to resonate with customers, he said on Thursday.
The source: ASX announcement
