JB Hi-Fi Limited (ASX: JBH) shares have fallen 7% lower according to Google Finance after providing investors with an update on how sales and profit are tracking for its 2018 financial year.
JB Hi-Fi is the company behind the JB Hi-Fi electronics store and The Good Guys.
In its update JB Hi-Fi revealed:
- JB Hi-Fi third-quarter sales growth of 6.8%, with same-store sales growth of 4%
- The Good Guys third-quarter sales declined 1.3% and comparable sales declined 2.9%
- Management reaffirmed the FY18 sales target of around $6.85 billion, of which $4.75 billion will be from JB Hi-FI and $2.1 billion from The Good Guys
- The company predicts profit will be around $230 million, instead of the previous target of $235 million to $240 million
JB Hi-Fi blamed challenging conditions in the home appliance market due to unfavourable weather conditions and “heightened price competition” which had an effect on the gross margin.
Management said that the company will continue to focus on sales and market share. JB’s management is confident in the group model for the medium and long-term outlook.
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