JB Hi-Fi share price falls despite strong Q3 sales growth


The JB Hi-Fi Limited (ASX: JBH) share price is falling on Wednesday.

In morning trade, the retail giant’s shares are down 2.5% to $51.26.

Why is the JB Hi-Fi share price falling today?

The JB Hi-Fi share price is falling today despite the release of a strong sales update.

According to the release, the retailer continued to experience heightened customer demand and strong sales growth during the third quarter of FY 2022.

The JB Hi-Fi business was once again the star of the show, reporting total sales growth of 11.9% year on year during the quarter. This was underpinned by an 11.1% jump in comparable store sales growth.

In light of this strong quarter, the JB Hi-Fi Australia business’ year to date sales are now up 1.9% year on year.

Over in New Zealand, the JB Hi-Fi business delivered a much-improved performance. It reported a 4.8% increase in sales during the third quarter. This has reduced JB Hi-Fi New Zealand’s year to date sales decline to just 1.8%.

Finally, The Good Guys business was also on form during the quarter. It reported a 5% increase in comparable store sales, bringing its total quarterly sales growth to 5.5% year on year. This means that year to date sales are now up 1.1% over the prior corresponding period.

What about the fourth quarter?

Pleasingly, JB Hi-Fi’s sales momentum has continued into fourth quarter. Though, management hasn’t provided any numbers. Nor has it provided any guidance for the full year.

It commented: “Whilst the Group is pleased with the continued sales momentum, the end of financial year remains an important trading period. In view of the ongoing disruption to stock availability and operations arising from Covid-19 and other local and global uncertainties, the Group does not currently consider it appropriate to provide FY22 sales and earnings guidance.”

Judging by the JB Hi-Fi share price performance today, it appears that some investors were expecting an even stronger update or more colour on its margins.

Source: Read More

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