Consumer electronics retailer JB Hi-Fi (JBH) had good news about its first quarter sales performance ahead of the completion of its Good Guys takeover at the end of next month.
Yesterday’s AGM was told by CEO, Richard Murray, that the first-quarter saw total sales up 12.4% and comparable sales up a very solid 8.3%. But that solid update won’t be the last good news from JBH – in the first six months of 2017, there should be at least one upgrade as it integrates the Good Guys purchase and adds to group sales and earnings (assuming there are no problems with the merger).
The consumer electronics and home appliances retailer also reaffirmed its total sales guidance of around $4.25 billion for 2016-17.
Mr Murray said the company is looking to complete The Good Guys deal on November 27, subject to certain conditions being met. JB Hi-Fi shares were up 5% in early trade yesterday, but came back to close just 1% higher at $28.28.
That is still a tasty 8% higher than the $26.20 big investors paid to help finance the Good Guys buy via and $394 million capital raising.
Not mentioned at the meeting was the probable cause for the solid first quarter performance – closure of Dick Smith stores which helped give a bog boost to June half year sales this year.
JB Hi-Fi expects to open seven new stores by June 2017, while it starts the integration of the Good Guys.
On that, Mr Murray told yesterday’s meeting that:
“We have commenced integration planning while remaining focused on Christmas trading. We are pleased with the progress made to date and as part of our integration planning we have considered the necessary resources to support the expanded group. Further to my appointment as Group CEO, Cameron Trainor, currently JB HI-FI Merchandising Director, will be appointed CEO of JB Hi-Fi and Michael Ford will continue as CEO of The Good Guys. I look forward to working closely with Cameron and Michael.”
