JB Hi-Fi Group’s shares jumped 6.7 per cent yesterday to $36.45 a share, following a strong first quarter showing by the Australian arm of the business.
The electronics retailer’s sales grew 4.7 per cent in the period from July 1 to September 30, while comparable sales were up 3.7 per cent.
However, The Good Guys saw sales fall 0.5 per cent over the same period, with comparable sales down 1.8 per cent, compared to 2.3 per cent and 1 per cent growth respectively in first quarter FY10.
The business’ New Zealand arm also didn’t reach the highs of first quarter FY19, with total and comparable sales growth of 3.8 per cent compared to 4 per cent total and 9.8 per cent comparable in the prior corresponding period.
Despite this, the business reaffirmed it would reach its FY20 sales target of $7.25 billion, including an Australian contribution of $4.84 billion, NZ$240 million in New Zealand, and $2.18 billion for The Good Guys.
“As we have said before, retailing is a dynamic and exciting industry and JB Hi-Fi and The Good Guys are market leaders in their respective sectors,” JB Hi-Fi Group chief executive Richard Murray said at the group’s AGM on Thursday.
“In JB Hi-Fi and The Good Guys, we believe we have two unique and relevant brands, particularly in the eyes of our customers.
“With a customer focused business model built on a diverse product offering, deep relationships with our suppliers, a high quality multichannel offer and exceptional customer service, we are confident we will maintain our market leading competitive position.”
The retail group experienced pressure from shareholder groups last week over the implementation of its remuneration report, which the Australian Shareholders’ Association and ISS Governance Services recommending a vote against the report.
However, the vote passed on Thursday, with 82 per cent voting to adopt the revised report, and 17 per cent voting against – avoiding the 25 per cent against vote that would have triggered a first strike against the JB Hi-Fi board.
Last year, 21 per cent of JB Hi-Fi shareholders voted against the report, prompting fears of a potential first strike at this year’s meeting.