The SMH blog notes today that:
Consumer electronics retailer JB Hi-Fi has reaffirmed its full-year earnings guidance despite slower than expected sales growth.
JB Hi-Fi now expects total sales for the year ending June 30 to rise 5.3 per cent, compared with a previous forecast for 6 to 8 per cent growth.
The new guidance suggests that JB-Hi-Fi, like many discretionary retailers, has experienced a sharp drop in sales growth momentum in the June quarter.
However, JB Hi-Fi still expects to report full-year net profit between $126 million and $129 million, up 8.3 per cent to 10.8 per cent.
More than half a dozen retailers including Pacific Brands, Super Retail Group, Funtastic, footwear chain RCG Group and Noni B have downgraded earnings forecasts in the last month after a sharp fall in sales post the May budget.
If JB is till going to make its profit guidance despite slowing top line growth then it’s going to reducing costs somewhere – jobs or capex.
In the recent capex upsurge it was retail that dominated:
I suspect Australian “rebalancing” is more behind than ahead.
