2339 GMT - Jefferies expects JB Hi-Fi's stock to fall sharply when the market opens in Australia and weigh on other discretionary retailers. That's because JB Hi-Fi reported an uncharacteristically weak FY 2026 result, which analyst Michael Simotas says is reflective of the challenging consumer environment. FY 2026 earnings missed expectations, albeit modestly. JB Hi-Fi also reported a weak 4Q sales run rate in key divisions. This has continued to deteriorate, turning negative for JB Hi-Fi Australia and The Good Guys. "Outlook commentary cautious on sales and margin and we expect fears of operating leverage to drive meaningful consensus downgrades," Jefferies says. JB Hi-Fi ended last week at A$81.71.