Boom electronics retailer JB Hi-Fi Ltd had a day of wide trading swings yesterday brought about by the early market sell-down, then by a trading update which allowed it to ride the late market surge.
JBH said at 10.54 am that sales in the first quarter of fiscal 2009 were on budget.
That saw the shares bottom at $10.23 after opening at $10.55; they then edged slowly higher as the overall market steadied around noon.
JBH shares moved into positive territory in the early afternoon to be up 85c, or 7.6% in the afternoon post rate cut rebound. They closed at $11.95.
The company said earnings for July and August were ahead of budget with margins remaining solid and cost control was "good". No figures were mentioned, nor the forecasts in its August outlook statement.
"Both sales and earnings are well up on the previous year," JB Hi-Fi said in a trading update.
"All six stores opened so far this financial year are trading well."
The company said it had yet to finalise its September quarter’s result.
JB Hi-Fi brushed off a spending slowdown to book a 61.2% lift in annual profit in fiscal 2008.
In the August report the company was upbeat about the 2009 year:
“Sales for July and August FY09 YTD have been very strong driven by Games, Movies, Computers and Visual. Consolidated comparable store growth for the first 7 weeks of trading in FY09 was 19.2% continuing our impressive comp store growth of the previous year” said (CEO Richard) Uechtritz.
“As this is only 7 weeks and we have the all important Christmas trading period ahead of us, we maintain our previous sales guidance in FY09 of circa $2.35 billion or 28% increase on FY08.”
The retailer said yesterday the update followed Harvey Norman’s announcement last week that profits had fallen 18.3% in the first two months of fiscal 2009 after losses in Ireland.
"Unaudited preliminary accounts for the period 1 July 2008 to 31 August 2008 indicate profit before tax and minority interests for the consolidated entity of $47.7 million compared to $58.3 million for the corresponding prior period, a reduction of 18.3% ($10.6 million)," HVN directors told the ASX.
"That reduction includes a loss from the Irish operations of $5.6 million. The company has no reason to believe that trading conditions in Ireland will improve in the near future."
HVN shares rose 12c to $2.93.
