JB Hi-Fi's share price nosedives on Monday after announcing CEO Terry Smart's resignation despite massive profit jump
JB Hi-Fi Limited, which includes the electronics retailer alongside The Good Guys and e&s, on Monday announced its profit increased 5.4 per cent to $462.4m while sales jumped 10 per cent in the year to July 1.
Despite the stellar results and the delivery of a $2.75 per share dividend for the full financial year, news that the electronics retailer's long-running boss Terry Smart was exiting - and that its chief operating officer Nick Wells would step up - spooked investors.
The share price plunged 8.2 per cent on Monday, wiping more than $950m off the stock's market capitalization.
It currently trades at about $108, significantly below its high of more than $120 when trading began on Monday.
Investors were also cautious about the company's enormous share price, which has soared more than 48 per cent over the past 12 months - greatly outpacing the company's earnings.
The incoming CEO, who will take on the top job from October 3, was praised by Mr Smart in the financial results.
'I have worked very closely with Nick for many years, particularly since my reappointment as group chief executive in 2021,' Mr Smart told investors on Monday.
'Nick has a great knowledge of the group's businesses and is highly respected by both our team members and stakeholders.
'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.'
Farhan Badami, a market analyst at eToro, said JB Hi-Fi's performance during the 2025 financial year stood out in an otherwise 'cautious consumer environment'.
'While many retailers have battled margin pressure from higher costs and weaker discretionary spending, JB Hi-Fi has leaned on brand strength, pricing discipline and a diversified product mix to keep sales momentum alive,' Mr Badami said.
He said the retailer may continue to shine in the coming financial year as further budget relief is expected for millions of Australians.
'With high interest rates still squeezing household budgets but potential RBA cuts on the horizon, JB Hi-Fi's value positioning and tight cost control could see the tills ring even louder in FY26,' Mr Badami said.
JB Hi-Fi Australia's strong result was lifted by a 16.4 per cent increase of online sales, with computer, mobile phone and gaming hardware sales - driven partly by the Nintendo Switch 2 - pushing the surge.
The Good Guys' profit lifted 8.2 per cent in the 2025 financial year, while e&s - which JB Hi-Fi purchased a 75 per cent stake in almost a year ago - reported a 5.2 per cent sales jump for the period of ownership.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
9 minutes ago
- The Age
Taking a haircut: The states where you're paying more at the salon
Australians are being forced to pay too much for trips to the hairdresser, repairs to their cars and painting for their homes by a patchwork of licence rules that the Productivity Commission says are hurting consumers and prospective workers. As part of a study that calls for an overhaul of high school and post-secondary education to deal with a growing number of students finishing their studies without key skills, the commission argues protections put in place by particular industries are imposing widespread financial costs across the economy. People in NSW and South Australia who want to become hairdressers need to complete a certificate III training course, at a cost of $13,000 to $28,000, putting upward pressure on prices. There is no evidence that it has improved the quality of cuts and colours compared with other states. The commission's study, the fourth of five it is releasing before next week's three-day economic roundtable, warned that the pace of economic change meant some existing jobs would disappear and others would be created, while new skills would be required for existing occupations. Ninety per cent of new jobs in coming years would require post-secondary qualifications from either universities or vocational education centres. Loading But the commission found consumers were being harmed by regulations governing existing jobs. It said occupational entry regulations (OERs), which require workers to meet minimum conditions such as a licence, were growing. One in five people were subjected to them, worsening worker shortages. In occupations such as hairdressing, vehicle repairs, painting and decorating, there were differing licence conditions across the country, but without measurably different outcomes.
Sydney Morning Herald
9 minutes ago
- Sydney Morning Herald
Taking a haircut: The states where you're paying more at the salon
Australians are being forced to pay too much for trips to the hairdresser, repairs to their cars and painting for their homes by a patchwork of licence rules that the Productivity Commission says are hurting consumers and prospective workers. As part of a study that calls for an overhaul of high school and post-secondary education to deal with a growing number of students finishing their studies without key skills, the commission argues protections put in place by particular industries are imposing widespread financial costs across the economy. People in NSW and South Australia who want to become hairdressers need to complete a certificate III training course, at a cost of $13,000 to $28,000, putting upward pressure on prices. There is no evidence that it has improved the quality of cuts and colours compared with other states. The commission's study, the fourth of five it is releasing before next week's three-day economic roundtable, warned that the pace of economic change meant some existing jobs would disappear and others would be created, while new skills would be required for existing occupations. Ninety per cent of new jobs in coming years would require post-secondary qualifications from either universities or vocational education centres. Loading But the commission found consumers were being harmed by regulations governing existing jobs. It said occupational entry regulations (OERs), which require workers to meet minimum conditions such as a licence, were growing. One in five people were subjected to them, worsening worker shortages. In occupations such as hairdressing, vehicle repairs, painting and decorating, there were differing licence conditions across the country, but without measurably different outcomes.
Perth Now
an hour ago
- Perth Now
Major update in plastics recycling scheme
The Australian Competition and Consumer Commission has proposed a new grant for a voluntary soft plastics recycling scheme, almost three years after the collapse of the REDcycle scheme. Run by the Soft Plastics Stewardship of Australia (SPSA), the scheme will re-encourage shoppers to collect and recycle soft plastics such as shopping bags and food wrappers. Melbourne-based soft recycling scheme REDcycle collapsed in November 2022. NewsWire / Ian Currie Credit: News Corp Australia In November 2022, Melbourne-based recycling program REDcycle collapsed after it was revealed hundreds of millions of soft plastics went unrecycled, instead stored inside warehouses. The ACCC previously engaged a trial with major supermarkets as part of the Soft Plastics Taskforce to remove the stockpile of soft plastics intended for REDcycle. More than 120 stores across Australia have launched in-store collection of soft plastics, which will be in place until July next year. Supermarkets including Aldi, Woolworths and Coles, as well as food companies Nestle, Mars and McCormick Foods have signed up as initial members of the scheme. The recycling program has been relaunched in several supermarkets across Australia. NewsWire / Brenton Edwards Credit: News Corp Australia ACCC deputy chair Mick Keogh said it was 'clear that many Australians are concerned about the environmental impacts of soft plastic packaging and want to recycle it'. 'We believe the proposed scheme will result in an environmental benefit as it aims to take over and expand the current in-store collection and kerbside pilots for recycling soft plastic packaging, meaning some soft plastics are likely to be diverted from landfill,' he said. 'While we know that soft plastic recycling has faced many challenges in Australia, we consider that the SPSA scheme is an important stepping stone to expanding collections and recycling.'
