The JB Hi-Fi Ltd (ASX: JBH) share price has been one of the best performers over the past year. Since 29 October 2025, the JB Hi-Fi share price has dropped 40%, making it one of the worst performers in the S&P/ASX 200 Index (ASX: XJO).
It's understandable why the ASX retail share has suffered such a large decline – investors are now worried about how sales and earnings could perform for the foreseeable future amid a tougher retail environment.
Is the company now undervalued? I like looking at sold-off stocks because there could be a real opportunity with a beaten-up leading retailer.
On 29 October 2026, the company announced its annual general meeting (AGM) update, which revealed some interesting sales numbers.
Image source: Getty Images
Sales recap
The business reported how it performed in the first quarter of FY27, being the three months to 30 September 2026.
JB Hi-Fi Australia saw total sales decline by 0.4%, with a comparable sales decline of 1.4%.
The Good Guys experienced total sales drop by 0.1%, with a comparable sales decline of 0.4%.
JB Hi-Fi New Zealand managed to grow total sales by 17.3%, aided by comparable sales growth of 10.7%.
Finally, there's the recently-acquired E&S business, which saw total sales decline by 3.7% amid a comparable sales drop of 4.5%.
Considering its two main Australian businesses have each seen total sales fall by less than 0.5%, the 40% decline seems like an overreaction to me.
Yes, there may be a bit of a further deterioration of trading conditions during FY27, but there's a fair chance the market has already seen the bottom of the JB Hi-Fi share price. It's normal for the share price to hit the lowest point before the financial result shows the lowest level of profit generation. Share prices move in anticipation of an upcoming result (or results).
Why I think the JB Hi-Fi share price is a buy
JB Hi-Fi doesn't sell basic essentials like food, electricity, gas, or water. It makes sense that the market may be worried by the outlook for household spending on electronics and appliances.
But, I don't think inflation, and therefore interest rates, will stay elevated forever. Therefore, weakness now could be a great time to invest and hold until there's an increase of customer demand again.
JB Hi-Fi can compete strongly in its industry with leading promotions and win at key sales events, drive operational improvements, and reinvest in customer-facing roles. The company says that its knowledgeable, passionate, and authentic team members are its key competitive advantage, and it'll continue investing in customer service.
It also plans to improve its online offering further, including with agentic e-commerce experiences, and invest in its supply chain.
Store growth can also help improve its financials. In FY27, it plans to open four new JB Hi-Fi Australia stores, open two new JB Hi-Fi New Zealand stores, and open one new The Good Guys store (as well as upsizing two undersized stores). It's also planning to expand the E&S store network outside of Victoria.
According to the earnings projection on CommSec, it's valued at 15 times FY27's estimated earnings, which I think is appealing considering it's forecast to grow its earnings by a total of 13% between FY27 and FY29.
