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Tuesday 13

November, 2018 7:17 AM



JB Hi-Fi bouyant, but dodges first strike

JB Hi-Fi bouyant, but dodges first strike

JB Hi-Fi has narrowly avoided a first strike form shareholders despite appearing to buck a discretionary spending downturn.

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By AAP 25.10.2018 04:02 PM

Tech and electronics retailer JB Hi-Fi has narrowly avoided a first strike form shareholders despite appearing to buck a discretionary spending downturn, though its 2016 acquisition of The Good Guys continues to weigh.

More than 21 per cent of shareholders at the company's annual general meeting in Melbourne on Thursday voted against adopting its 2018 pay structure, just under the 25 per cent needed to cause a first strike and place more pressure on the board.

Chief executive Richard Murray had earlier reaffirmed JB Hi-Fi Group's $7.1 billion sales guidance for the coming year, which is up from $6.9 billion in 2018, despite a competitive retail scene that has been further disrupted by new online players.

Consumer discretionary stocks have been sliding since late-August.

The Good Guys, meanwhile, has continued to struggle with its home appliances competitors with a total first-quarter sales growth of 2.3 per cent, and comparable sales growth of just one per cent.

In comparison, total first-quarter sales growth for JB Hi-Fi Australia was 5.3 per cent, with comparable sales growth of 3.4, while JB Hi-Fi New Zealand grew four per cent, with comparable sales growth of 9.8 per cent.

JB Hi-Fi acquired the Good Guys in November 2016 for $870 million.

The Group had 311 stores in Australia and New Zealand at June 30, with eight new JB Hi-Fi Australia stores and two The Good Guys stores opened in FY18.

JB Hi-Fi shares were buying $23.12 at 1555 AEDT after fluctuating throughout the day's trade between a morning high of $23.93 and a lunchtime low of $22.53.

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