The Gold Coast Bulletin

Good Guys coming to rescue for JB Hi-Fi

- PETRINA BERRY

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-for- like 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 Hi-Fi 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 JB Hi-Fi investors were yet to price in the risk to sales and earnings from the market disruption when Amazon started its planned rollout in Australia mid next month.

“In the near term, we see the potential for elevated price competitio­n, rather than Amazon capturing a large share of the electronic­s market,” the Citi analysts said.

JB Hi-Fi shares closed unchanged yesterday at $23.53.

 ??  ?? JB Hi-Fi’s Richard Murray,
JB Hi-Fi’s Richard Murray,

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