JB Hi-Fi Ltd (JBH.AU) saw its stock price plummet 5.12% in intraday trading, as investors reacted to the company's third-quarter sales update that revealed a slowdown in recent weeks. Despite reporting overall positive growth, the electronics retailer's performance raised concerns about its premium market valuation.
According to the company's Q3 update, JB Hi-Fi Australia reported total sales growth of 6.5%. However, a closer look at the figures shows a deceleration in like-for-like sales growth. The JB Hi-Fi Australia business experienced a slowdown from 7.1% growth in January to 5.4% in February and March. A similar trend was observed in The Good Guys division.
Analysts at Barrenjoey noted that while the overall Q3 like-for-like sales growth of 6.0% for JB Hi-Fi Australia and 4.1% for The Good Guys is "solid in a value-focused consumer environment," the numbers fell short of market expectations. The 50-100 basis points lower growth compared to consensus estimates, combined with JB Hi-Fi's premium stock rating, led to predictions of market weakness. The impact of the later timing of Easter on sales growth remains unclear, adding another layer of uncertainty for investors.
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