JB Hi-Fi Ltd (ASX: JBH) shares are under pressure today.
Shares in the S&P/ASX 200 Index (ASX: XJO) electronics retailer closed yesterday trading for $113.52. In morning trade on Thursday, shares are changing hands for $107.74, down 5.1%.
For some context, the ASX 200 is down 0.3% at this same time.
JB Hi-Fi stock could be catching some headwinds today following yesterday's highly unwelcome inflation news from the ABS. With inflation picking back up, the odds of another RBA interest rate cut this year have plunged, which could impact consumer discretionary spending heading into the crucial holiday months.
JB Hi-Fi also released a quarterly sales update this morning ahead of today's Annual General Meeting (AGM).
Here's what we know.
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JB Hi-Fi shares slip despite sales growth
Investors are bidding down JB Hi-Fi shares today despite the company reporting quarterly sales growth across all its businesses.
The ASX 200 retailer reported total sales growth of 6% for JB Hi-Fi Australia, with comparable sales growth of 5%.
And the company's New Zealand branch saw a major uptick in business, with total sales growth for JB Hi-Fi New Zealand of 39.3% and comparable sales growth of 24.3%.
At The Good Guys, total sales growth for the three months to 30 September came in at 2.5%, with comparable sales growth of 2.4%.
And JB Hi-Fi reported total sales growth for e&s of 4.1% with comparable sales growth of 0.7%.
What did management say?
JB Hi-Fi shares gained 5.1% over the September quarter.
Commenting on the company's performance, CEO Nick Well, who took over the reins earlier this month from former CEO Terry Smart, said, "Q1 FY26 sales are in line with the group's expectations, as we enter the important Q2 trading period."
Looking ahead, Well added:
We will continue to expand our store network across the group. In FY26, we will open three new JB Hi-Fi New Zealand stores, one new e&s store and five JB Hi-Fi Australia stores.
We will also close one JB Hi-Fi Australia store and complete two major store relocations in The Good Guys. Our Commercial businesses will continue to grow as we expand our customer base and strengthen our position across the market.
Addressing the company's critical supply chains, Well said:
Our investment in building and maintaining a fit-for-purpose supply chain network is ongoing. We will continue to focus on delivering best-in-class delivery options for our customers across all of our channels, optimizing inventory flow to ensure strong stock availability, particularly during peak trading periods, and improving the flow of bulky products.
With today's intraday dip factored in, JB Hi-Fi shares remain up 39% over 12 months, not including dividends.
