David RichardsJB Hi Fi is set to rock with the Company forecasting sales growth of 28% running into the last quarter of 2008. This is despite what JB Hi-Fi chief executive Richard Uechtritz calls a “challenging environment”.
JB Hi Fi is set to rock with the Company forecasting sales growth of 28% running into the last quarter of 2008. This is despite what JB Hi-Fi chief executive Richard Uechtritz calls a “challenging environment”.
In a word of warning he told shareholders at today’s Annual General Meeting that he expects the current economic crisis will lead to further industry rationalisation.
The Company is forecasting that sales will rise to $2.35 billion from fiscal 2008. Company Chairman Patrick Elliot said every company in the consumer electronics sector was under scrutiny.
“Despite the current economic and retail environment and with the all important Christmas trading period ahead of us, the company remains confident that it will meet market expectations,” Mr Uechtritz said. He added “As previously advised to the market, trading in the first quarter has been solid and we maintain our previous sales guidance for fiscal 2009 of circa $2.35 billion or a 28 per cent increase on fiscal 2008.”
“Low levels of unemployment, falling interest rates and the possible switch from other big ticket purchases may continue to support a reasonable level of consumer spending in our major categories,” he added.
“We expect however that these more challenging times in retail will prove a catalyst for further industry rationalisation, increased market share for the company and further enhancement of our competitive advantage.”
The Australian said that both sales and earnings at JB Hi Fi are well up on the previous year, but the company has yet to finalise its September results.
All 6 stores opened so far this financial year are trading well, it added.
After opening 20 new stores during 2007/08, the company will open another 14 new stores for the six months to Christmas 2009, taking its total store franchise network to 119 stores.
Downlod the JB Hi Fi report here.