Good Guys coming to rescue for JB Hi-Fi
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.