Australia’s JB Hi-Fi shares slide after flagging weak start to FY27

JB Hi-Fi shares plummeted on Monday following the Australian consumer electronics giant's announcement that while it delivered strong annual results, the company expects weaker sales at the start of its fiscal year 2027. The retailer reported record FY26 sales of A$11.06 billion, an increase of 4.8%, with net profit rising by 6.0% to A$489.9 million. Earnings before interest, tax, depreciation, and amortization surged 3.8%, and the company hiked its total ordinary dividend by 22.5% to 337 Australian cents per share.

However, the company faced challenges in July as its Australian businesses showed signs of pressure. JB Hi-Fi Australia's total sales slipped 0.5%, with comparable sales decreasing by 1.4%. The Good Guys, a subsidiary, experienced a 1.7% decline in both total and comparable sales. The Sydney-listed shares of JB Hi-Fi plummeted as much as 14.6% to A$69.77 by 03:17 GMT, marking their lowest level since early June.

Chief Executive Nick Wells attributed the decline to customers seeking value and shifting their spending towards major promotional events. Additionally, supplier price hikes and shortages of technology products were contributing to the company's declining sales.