The JB Hi-Fi Ltd (ASX: JBH) share price has fallen 13% after the company reported its FY26 result and a weak July trading update.
JB Hi-Fi is an electronics and appliance retailer with stores in Australia and New Zealand. It also owns The Good Guys and E&S.
FY26 result
Here are some of the highlights from the 12 months to 30 June 2026:
- Sales grew 4.8% to $11.1 billion
- EBIT (EBIT explained) increased 5.8% to $734.4 million
- Net profit after tax (NPAT) rose 6% to $489.9 million
- Earnings per share (EPS) rose 5.9% to $4.48
- Underlying net profit grew 2.9%
- Underlying EPS increased 2.9%
- Dividend per share hiked by 22.5% to $3.37
What happened?
JB Hi-Fi Australia saw total sales growth of 4.4% to $7.4 billion, with gross profit growth of 4.2% to $1.63 billion and EBIT growth of 3.2% to $547.3 million.
JB Hi-Fi New Zealand saw total sales growth of 26% to NZ$499.5 million, gross profit rose 29.1% to NZ$86.9 million and EBIT climbed NZ$4.3 million to NZ$4.1 million.
The Good Guys sales rose 2.7% to $2.94 billion, gross profit grew 3.9% to $698.9 million and EBIT rose 6% to $184 million.
E&S total sales came to $273.1 million, down 0.2%. JB Hi-Fi owned this business for 10 months. Gross profit was $81.2 million and EBIT was negative $0.4 million.
Trading update
A key reason that the market has reacted negatively today is that July 2026 sales fell year on year for three of its businesses.
JB Hi-Fi Australia sales declined 0.5%, JB Hi-Fi New Zealand sales rose 20.9%, The Good Guys sales fell 1.7% and E&S sales declined 2.7%.
Management comments
The JB Hi-Fi CEO Nick Wells said:
We continue to see variability in trading, with customers increasingly looking for value and migrating spend to key promotional events, along with impacts from supplier price rises and stock availability shortages in the technology categories.
As always, we will remain focused on driving demand and growing market share through creating great value offers for our customers, leveraging our strong supplier relationships to maximise stock allocations and delivering exceptional customer service.
I would like to recognise and thank our over 17,000 team members whose continued focus on our customers and proven ability to adapt and respond has helped to deliver another solid full year result.
Final thoughts on the JB Hi-Fi share price
I can see why the market has reacted negatively to these numbers. Investors want to see sales going up not down. Operating leverage can be negative as well as positive, depending on which way sales growth is going.
I think the business is close to being a buy, if it isn’t already. I like to look at retailers when retail conditions are weak rather than strong due to their cyclical nature. Therefore, JB Hi-Fi could be one of the good ASX dividend shares to look at.
