Published: Mon, February 12, 2018
Business | By Max Garcia

Shares in JB Hi-Fi are tanking

Shares in JB Hi-Fi are tanking

Both total and comparable sales for the Australian segment fell compared to January 2017, and sales from The Good Guys were particularly disappointing compared to the same month past year.

The company lifted its interim dividend 14 cents to 86 cents, fully franked.

"JB Hi-Fi has rallied strongly into this result on high expectations for Christmas trading (and) while this proved correct, concern is likely to build around gross margin pressure", Citi analysts wrote in a client note.

Online sales, in particular, were a particularly strong growth area, surging 40.6 per cent to $119.3 million.

During the period, JB Hi-Fi opened up seven new Australian stores, plus two new The Good Guys outlets.

"We continue to reposition the New Zealand business as part of our strategy to improve performance", the retailer said in presentation slides accompanying the release.

Total sales in New Zealand dropped 0.4 per cent to $115.5 million ($NZ124.6 million).

The company now expects its full-year profit to be in the $235-$240 million range - beating its $172 million result last year.

Total sales growth for The Good Guys was 5.0% and comparable sales growth was 3.5% in January 2017, and the same figures fell to -3.5% and -4.7% respectively in January 2018.

"It was another strong result for the JB Hi-Fi business in Australia, particularly through the important November and December periods".

"We are pleased with the progress we have made at The Good Guys and are confident about the future opportunities for the Group". JB Hi-Fi closed one store in New Zealand.

The "record" results mark another milestone for JB Hi-Fi, who recently nabbed a place on Deloitte's list of the world's top 250 retailers.

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