JB Hi-Fi’s first-half underlying earnings before interest and taxes (EBIT) of $454 million has edged past consensus estimates by 1 per cent, according to Citi analyst Adrian Lemme. However, the sales figures have fallen short of the broker’s forecasts. JB Hi-Fi is a retailer of consumer electronics and home appliances, operating several brands across Australia and New Zealand. The Good Guys, owned by JB Hi-Fi, is a major retailer of consumer electronics and home appliances.
Like-for-like sales growth in JB Hi-Fi Australia reached 5 per cent in the first half, which is below Citi’s estimated 7.5 per cent. The Good Guys experienced a similar trend, with growth of 4 per cent, slightly below the predicted 4.5 per cent. Despite the sales update in JB Hi-Fi Australia appearing soft, Lemme noted that earnings were in line with expectations. He added that the stock had already experienced a significant sell-off in the previous month, driven by anticipation of a weaker earnings outlook.
Margin performance proved to be a highlight, with JB Hi-Fi Australia’s gross margin increasing by 11 basis points, contrasting with Citi’s expectation of a 15 basis point decline. The interim dividend was declared at $2.10 per share, narrowly missing Citi’s forecast of $2.13. Recent trading data for January indicates a slowdown, with like-for-like sales up by 2.4 per cent at JB Hi-Fi Australia and 2.7 per cent at The Good Guys. These figures are below consensus expectations for the second half.
