JB Hi-Fi share price falls despite strong Q3 sales growth

Woman checking out new iPads.

Woman checking out new iPads.

The JB Hi-Fi Limited (ASX: JBH) share price is falling on Wednesday.

In morning trade, the retail giant’s shares are down 2.5% to $51.26.

Why is the JB Hi-Fi share price falling today?

The JB Hi-Fi share price is falling today despite the release of a strong sales update.

According to the release, the retailer continued to experience heightened customer demand and strong sales growth during the third quarter of FY 2022.

The JB Hi-Fi business was once again the star of the show, reporting total sales growth of 11.9% year on year during the quarter. This was underpinned by an 11.1% jump in comparable store sales growth.

In light of this strong quarter, the JB Hi-Fi Australia business’ year to date sales are now up 1.9% year on year.

Over in New Zealand, the JB Hi-Fi business delivered a much-improved performance. It reported a 4.8% increase in sales during the third quarter. This has reduced JB Hi-Fi New Zealand’s year to date sales decline to just 1.8%.

Finally, The Good Guys business was also on form during the quarter. It reported a 5% increase in comparable store sales, bringing its total quarterly sales growth to 5.5% year on year. This means that year to date sales are now up 1.1% over the prior corresponding period.

What about the fourth quarter?

Pleasingly, JB Hi-Fi’s sales momentum has continued into fourth quarter. Though, management hasn’t provided any numbers. Nor has it provided any guidance for the full year.

It commented: “Whilst the Group is pleased with the continued sales momentum, the end of financial year remains an important trading period. In view of the ongoing disruption to stock availability and operations arising from Covid-19 and other local and global uncertainties, the Group does not currently consider it appropriate to provide FY22 sales and earnings guidance.”

Judging by the JB Hi-Fi share price performance today, it appears that some investors were expecting an even stronger update or more colour on its margins.

The post JB Hi-Fi share price falls despite strong Q3 sales growth appeared first on The Motley Fool Australia.

Should you invest $1,000 in JB Hi-Fi right now?

Before you consider JB Hi-Fi, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and JB Hi-Fi wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/25k6EQr

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s