Retailer reaffirms profit guidance but sales growth downJB Hi-Fi expects total sales to miss previous guidance of 6-8% growth for 2014 financial year. The retailer said FY14 sales will increase just over 5% year-on-year, in a statement today.
The tech retailer reaffirmed earnings guidance, predicting FY14 net profit (after tax) will increase between 8.3% -10.8%, or in the range of $126m – $129 million, as per its previous forecast.
In its half year earnings announcement earlier this year, JB Hi-Fi CEO Terry Smart said Home appliance stores were going hell for leather and was the major growth driver in the business, as conversion of electronics stores to appliance-only destinations continues apace.
One in three JB Hi-Fi stores will be Home appliances-only stores by 2015.
However, JB Hi-Fi is also planning to amp up its wireless audio offering, CN reported yesterday.
CEO Terry Smart, whose retirement was announced in April is to leave the company at the end of the month, as planned. He will be succeeded by Executive Director and Chief Financial Officer, Richard Murray.
“Following a smooth and successful transition period Terry will leave the Company on 30 June 2014. The Board thanks Terry for his outstanding contribution to the Company over the past 14 years, wishes him all the best for the future and looks forward to Richard taking on the role of CEO and continuing to deliver on JB Hi-Fi’s successful model,” JB Hi-Fi Chairman Greg Richards said.
Company shares soared 2% to $19.1 on the ASX today.