JB Hi-Fi downgrades Christmas spirits

By David Binning on Dec 16, 2011 8:47 AM
Filed under Sales & Marketing

Bad sign for industry as a whole.

Shares in JB Hi  FI are expected to take a beating this morning after the company issued a statement to the market downgrading sales projections for the Christmas period.

For the six months to December 31 this year the discount retailer said earnings before interest and tax would be 5 percent lower than for the same period last year. The biggest drag it said was heavy price reductions in the industry, especially of flat screen TVs which it said had fallen by up to 25 percent in some cases.

The projected earnings drop comes despite JB HI Fi having opened several new stores over the past year.

On the bright side, JB reiterated that it saw strong growth in the past six months for computers, IT and accessories after a flat performance in the first quarter. It also reported an impressive 80 percent jump in online sales while also issuing a positive report card for the newly launched digital streaming music service JB Hi-Fi NOW.

Nevertheless, JB’s sales downgrade was bleak news for the retail industry in which it is considered among the more resilient players.

 
Follow us on Facebook and Twitter
 

Copyright © CRN Australia. All rights reserved.

Promo

JB Hi-Fi downgrades Christmas spirits
Tags
 
 
 
 
 
Top Stories
Debts tip $20m at failed point-of-sale distributor
As Mecari’s assets sold to another distie.
 
Brocade, AWS chiefs cycling from Adelaide to Darwin
Michelle Bridges helps team raise $250,000 for charity.
 
Five tech leaders without a degree
Execs show university isn’t always necessary.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
Which device are you more excited about?

Latest Comments
CRN Magazine

Issue: 341 | August 2015

CRN Magazine looks in-depth at the emerging issues and developments for the channel, and provides insight, analysis and strategic information to help resellers better run their businesses.