Sound plans
JB Hi-Fi says sales growth has slowed but the group still expects turnover to surge this financial year as it reaps the benefits of its buyout of The Good Guys.
JB Hi-Fi says sales growth has slowed but the group still expects turnover to surge this financial year as it reaps the benefits of its buyout of The Good Guys.
In a trading update yesterday, the Melbourne-based electricals retailer said like-forlike sales – a tally covering shops that have been open at least a year – were up 3.2 per cent between June 30 and October 22 from the same period a year ago.
That compares with growth of 10 per cent a year earlier.
JB Hi-Fi management said the weaker performance was due to changes in the timing of product releases, and the exceptional sales growth achieved in the same period a year ago. Like-for-like sales at The Good Guys, which JB bought last November, rose 2.4 per cent.
Chief executive Richard Murray told shareholders at JB Hi-Fi’s annual meeting that the company still expected its sales to total about $6.8 billion this financial year – including $2.15 billion in sales from The Good Guys. That would be an increase in total sales from $5.6 billion the previous year.
Analysts at investment bank Citi said they suspected the iPhone 8 failed to drive sales growth as shoppers held off for the iPhone X, which is to be released on November 3.