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Monday 23

July, 2018 2:48 AM



JB Hi-Fi downgrades its profit forecast

JB Hi-Fi downgrades its profit forecast

Unfavourable weather conditions and more competition for home appliances at the start of 2018 have dented JB Hi-Fi's $240 million full year profit forecast.

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By AAP 02.05.2018 04:37 PM

JB Hi-Fi says unfavourable weather conditions and heightened competition has hit sales at The Good Guys and forced it to trim its full-year profit guidance.

The retailer had expected to make a net profit of between $235 million and $240 million in 2017/18, but said on Wednesday that forecast has been reduced to around $230 million.

Third quarter comparable sales at The Good Guys, which JB Hi-Fi bought in 2016, were down 2.9 per cent from a year ago, and sales in the financial year to date have increased by just 0.3 per cent.

"The Good Guys performance has been impacted by challenging conditions in the home appliance market, due to unfavourable weather conditions coupled with heightened price competition," JB Hi-Fi said in a presentation to investors.

"Whilst the challenging conditions in the home appliance market are expected to impact performance in the short term, we remain confident in the group model and the medium- and long-term outlook for The Good Guys and JB Hi-Fi."

JB Hi-Fi shares dropped $2.29, or nine per cent, to a five month low of $23.28.

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