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
Telstra debuts in top 100 global brands
Brand worth an estimated $12.7 billion.
 
The 20 most valuable global tech brands
Counting down the top IT, telecoms and digital companies.
 
Dick Smith brings Apple reseller Mac1 in-store
Nine kiosks to go live in 2015.
 
Sign up to receive CRN email bulletins
   FOLLOW US...
Polls
Should Australian companies be given preference for government contracts?

Latest Comments
CRN Magazine

Issue: 338 | May 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.