JB Hi-Fi shares plunge after CEO’s stark warning on spending downturn

Tech titan JB Hi-Fi is the latest big retailer to sound alarm bells over a sharp spending downturn, with shoppers snapping their wallets shut in recent weeks.

The retailer, which also owns The Good Guys and upmarket appliance seller e&s, says July sales were down across all three chains.

Investors were spooked by the warning, with shares down 11% in morning trade.

It came as the group posted record sales of $11.06billion for the financial year ended June 30. The result was up almost five per cent. Profits were up six per cent to almost half a billion dollars. Investors will receive a full year dividend of $3.37 per share.

CEO Nick Wells described the current trading environment as uncertain, with those who are spending looking for deals.

“We continue to see variability in trading, with customers increasingly looking for value and migrating spend to key promotional events,” he said.

Wells also noted impacts of the global AI boom, which is squeezing tech supply chains, creating stock shortages and forcing price rises for some goods. Key drivers for the group include laptops, mobile phones, small appliances and vacuums.

JB Hi-Fi now boats 209 stores across the country and has become a mecca for tech-hungry consumers.

The Good Guys has a footprint of just over 100 stores, targeting home-making families. Premium appliance outfit e&s has a dozen stores across Melbourne but is earmarked for expansion.