JB Hi-Fi shares slide 13.8% as Australian sales dip at start of FY27
JB Hi-Fi's Australian sales fell 0.5% in July, sending shares down 13.8% and raising concerns about earnings downgrades.
Shares of Australian electronics retailer JB Hi-Fi plunged as much as 13.8% to A$70.40 on Monday, marking their steepest intraday decline since March 2020. The sell-off came after the company reported a 0.5% drop in total sales at its Australian business for July, the first month of fiscal 2027.
The weak start to the financial year contrasts sharply with market expectations. Visible Alpha forecasts had projected 3.2% sales growth for the period, while comparable sales declined 1.4% during the month.
Group CEO Nick Wells attributed the softness to shifting consumer behaviour, noting that customers are increasingly seeking value and concentrating their spending around key promotional events. He also cited supplier price increases and stock availability shortages in technology categories as contributing factors.
Analysts at Jefferies said they expect concerns about operating leverage to trigger meaningful consensus earnings downgrades. The stock was among the top laggards in the S&P/ASX 200 index.
Despite the weak start to the new fiscal year, the company reported a 4.8% rise in annual total sales to a record A$11.06 billion, with net profit after tax of A$489.9 million for the previous fiscal year.