JB Hi-Fi reaffirms sales guidance despite low sales performance
Consumer electronics retailer JB Hi-Fi reaffirmed its sales guidance Friday of close to $3 billion even as its March and April sales failed to hit marked expectations and reflected the dwindling effects of government stimulus programs and increasing interest rates.
Compared to many retailers, the company said that comparative store sales in the third quarter were positive as it admitted that government stimulus package gathered stronger support for sales last year.
The company said in its presentation to the Macquarie Australia Conference that it has remained watchful for possible effects of the consecutive cash rate rises to consumer habit and spending.
Yesterday, the Australian Bureau of Statistics (ABS) reported that retail sales leaped by a measly 0.1 percent in the March quarter for a 12-month growth performance of only 1.2 percent, though JB Hi-Fi is predicting that the difficult environment would be eclipsed by the country's above-average economic gains and labour condition improvements.
JB Hi-Fi even reconfirmed its sales guidance of $2.8 billion with net profit that could peak up to $120 million as its stores are anticipating fourth quarter sales boost from the recent release of the Avatar game & movie, introductions of the 3D TV and the mounting excitement for the upcoming World Cup in South Africa this coming June.
The retailer is also upbeat that its management transition is running smoothly as chief executive officer Richard Uechtritz announced in early February that chief operational officer Terry Smart would take over from him after holding the company's top spot for 10 years.
JB Hi-Fi chairman Patrick Elliot said that Mr Smart is effectively engaged in running the daily operations of the company as Mr Uechtritz is set to officially retire by the end of May 2010 but he will stay on board as a non-executive director until the end of calendar year 2013.