JB Hi-Fi Ltd (ASX: JBH) shares are on the move on Monday morning.
In early trade, the retail giant's shares hit a record high before giving back those gains and some more.
At the time of writing, its shares are down 2% to $113.61.
This follows the release of the company's full year results before the market open.
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JB Hi-Fi shares climb on results day
Investors were bidding the company's shares higher initially after responding positively to its strong sales and profit growth.
For the 12 months ended 30 June, JB Hi-Fi reported a 10% increase in sales to $10.6 billion and a 7.3% lift in earnings before interest and tax (EBIT) to $694.1 million.
And on an underlying basis, the company's EBIT was up 9.4% to $707.8 million, which was ahead of what analysts were expecting. The consensus EBIT estimate was $701 million for the year.
On the bottom line, net profit after tax was up 5.4% to $462.4 million on a reported basis and 8.5% to $476.1 million on an underlying basis.
The difference between the reported and underlying results was an expense relating to the resolution of the ACCC proceedings against The Good Guys.
This ultimately allowed the JB Hi-Fi board to declare a final fully franked dividend of $1.06 per share, which brought its total dividends to $2.75 per share. This is up 5.4% year on year and was ahead of Bell Potter's estimate of $2.70 per share.
But the company didn't stop there. It also declared a fully franked special dividend of $1.00 per share and boosted its future payout ratio from 65% to a range of 70% to 80% of net profit after tax.
CEO exit
Weighing on JB Hi-Fi's shares this morning is surprise news that its CEO, Terry Smart, will be stepping down on 3 October.
He will be replaced by Nick Wells, who is currently the retailer's chief operating officer.
Commenting on his exit, Smart said:
The decision to leave was a difficult one to make, having been involved with the Company for many years and being able to work with one of Australia's and New Zealand's best and most respected retail teams. I am proud of what we have achieved over the years.
With the support of the best retail management team in the market, I am sure that the Group will continue to go from strength to strength under Nick's leadership.
Outlook
Management revealed that its sales have continued to grow in early FY 2026.
For the period 1 July to 31 July, JB Hi-Fi Australia sales were up 6.1%, JB Hi-Fi NZ sakes were up 38.1%, and The Good Guys sales were up 4.2%.
Speaking about its performance in FY 2026, Smart said:
It has been pleasing to see the positive momentum continue in July supported by new product launches and an improved stock position. As always, the retail market remains uncertain, but the team's unwavering focus on the customer, their ability to adapt and innovate and our focus on driving best value in our categories will ensure our brands remain top of mind with shoppers.
