The JB Hi-Fi Ltd (ASX: JBH) share price is taking a tumble today.
Shares in the S&P/ASX 200 Index (ASX: XJO) electronics retailer closed yesterday trading for $103.61. In morning trade, shares are swapping hands for $99.11 apiece, down 4.3%.
For some context, the ASX 200 is up 0.3% at this same time.
With today's intraday fall factored in, the JB Hi-Fi stock remains up 62.5% since this time last year. And that doesn't include the $3.53 a share in fully franked dividends that stockholders will have received over the year.
Here's what investors are poring over today.
JB Hi-Fi share price slides on growth figures
Investors are pressuring the JB Hi-Fi share price following a third quarter (Q3 FY 2025) sales update released this morning, despite ongoing sales growth.
For the three months from 1 January to 31 March, the ASX 200 retailer reported continuing year-on-year sales growth at its Australian and New Zealand JB Hi-Fi stores and growth at The Good Guys and e&s.
In Q3, sales growth at JB Hi-Fi Australia was 6.5%; JB Hi-Fi New Zealand posted quarterly growth of 17.5%; sales growth at The Good Guys was 4.6%; and sales increased by 1.9% at e&s.
For the first three quarters of FY 2025 (covering the nine months to 31 March), the company reported the following sales growth:
- 7.0% at JB Hi-Fi Australia
- 19.2% at JB Hi-Fi New Zealand
- 7.8% at The Good Guys
- 5.2% at e&s
While these figures are strong, investors appear to have expected more. For example, sales growth at JB Hi-Fi Australia for the same nine months of FY 2024 was 6.9%, which means that FY 2025 growth only improved by 0.1% over the year.
Commenting on the quarterly results that have yet to boost the JB Hi-Fi share price today, CEO Terry Smart said, "In a challenging and competitive retail market, we are pleased to see sales momentum continue in Q3 FY 2025."
Smart added:
As we approach the important end of financial year trading period, we remain focused on delivering consistently high levels of customer service and exceptional value for our customers.
Is the ASX 200 electronics retailer a good buy?
After gaining 63% over the past 12 months, can the JB Hi-Fi share price keep outperforming in the year ahead?
According to the analysts at Macquarie Group Ltd (ASX: MQG), very much so.
In late March, Macquarie analyst Caleb Wheatley noted that, "Since COVID, we have seen consumer behaviour towards technology shift, as it increasingly becomes a necessity in the household."
Wheatley also pointed to the company's strong balance sheet and strong margin management as reasons to be bullish.
Wheatley has an outperform rating on the ASX 200 electronics retailer, with a $111.00 target for the JB Hi-Fi share price. That represents a potential upside of 12% from today's levels.
