2 ASX 300 retail shares tumbling lower on key updates today

Investors are bidding down both ASX 300 retailers on Thursday. But why?

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Two leading S&P/ASX 300 Index (ASX: XKO) retail shares released some key updates this morning.

Namely consumer electronic goods retailer JB Hi-Fi Ltd (ASX: JBH) and online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

Here's what they announced.

ASX 300 retail share slides on results

The Temple & Webster share price is down 3.0% to $12.24 after the ASX 300 retail share released a trading update ahead of its presentation at the Macquarie Conference.

Still, shares remain up a whopping 93% over the past six months.

Shares are sliding despite Temple & Webster reporting that the first half-year sales were strong, with sales from 1 January to 5 May up 30% compared to the prior corresponding period. The company said sales growth is being driven by both repeat and first-time customers.

And Temple & Webster is harnessing artificial intelligence to drive growth and improve customer experience.

"Our suite of internal AI solutions are delivering, in aggregate, conversion rate increases of over 10% and are now handling ~40% of all customer interactions," the company stated.

The ASX 300 retail share also reaffirmed its full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance range.

"We reiterate our EBITDA guidance of 1-3%, targeting the mid-point of the range as we continue to invest in growing our market share and delivering on our key growth pillars," CEO, Mark Coulter, said.

"While the overall furniture and homewares market is down 4% HTD [1 January to 5 May] due to cost-of-living pressures, our strong growth highlights the significant market share gains we are making," Coulter added.

As for the balance sheet, the ASX 300 retail share is holding more than $100 million in cash with no debt.

Temple & Webster reports its full-year results in August.

JB Hi-Fi share price dives on slowing growth

The JB Hi-Fi share price is also under selling pressure this morning, down 5.5% to $56.65 after the electronics retailer released a sales update for the period from 1 January to 31 March (Q3 FY 2024).

The JB Hi-Fi share price remains up 22% over the past six months.

The ASX 300 retail share reported a 0.3% year on year decline in same-store sales growth for its JB Hi-Fi Australia business. The JB Hi-Fi New Zealand business, on the other hand, enjoyed a 2.9% increase. Comparable sales growth at The Good Guys dipped 0.8% from the prior corresponding period.

For the first three quarters of FY 2024, JB Hi-Fi sales growth in both Australia and New Zealand was flat. Sales growth at The Good Guy sales declined by 7.3%.

Commenting on the results pressuring the ASX 300 retail share today, CEO Terry Smart said, "We are pleased with our Q3 FY24 sales results. Our trusted value-based offerings and high levels of customer service continue to resonate with our customers."

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Jb Hi-Fi and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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