Latest news with #Smart
Sky News AU
3 hours ago
- Business
- Sky News AU
JB Hi-Fi's share price nosedives on Monday after announcing CEO Terry Smart's resignation despite massive profit jump
A major Australian retailer's share price has dived despite posting a hefty profit for the 2025 financial year, as its long-serving CEO revealed he was stepping down later this year. 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.
West Australian
4 hours ago
- Business
- West Australian
Retiring JB Hi-Fi boss Terry Smart crosses his fingers for an RBA rate cut as retailer posts 5.4pc profit lift
Outgoing JB Hi-Fi boss Terry Smart has his fingers crossed for a widely-anticipated interest rate cut on Tuesday, warning it will take more than two rounds of rate relief to get consumers splurging on new gadgets and tech. His comments on Monday came after the retail bellwether — which also owns JB Hi-Fi New Zealand, The Good Guys chain and home appliance and bathroom retailer e&s — delivered a 5.4 per cent lift in full-year net profit to $462.4 million, in line with market expectations. Total sales in the year to the end of June grew 10 per cent to hit $10.6b, while earnings rose 7.3 per cent to $694.1m. Both were broadly in line with consensus. 'With the interest rate cuts that we've already had, hopefully we'll see tomorrow . . . some more positivity come back into the market and hopefully drive some sales even further,' Mr Smart told The Nightly. 'We didn't anticipate that we would see an immediate response to one or two interest rate cuts, it may take a few to really build up that momentum.' It was also announced Mr Smart would retire in early October and be replaced by current chief operating officer Nick Wells. It marks Mr Smart's second departure from the retailer, having held the CEO position for four years until June 2014. He rejoined the company in early 2017 as chief of The Good Guys, before being reappointed as group CEO in 2021. Mr Smart's looming departure weighed on JB Hi-Fi shares, with the stock down 7.5 per cent to $108.81 just before 1pm on Monday. UBS analyst Shaun Cousins said the CEO transition was expected but the timing was a little earlier than anticipated. However, he remains confident JB Hi-Fi can continue to execute. JB Hi-Fi's group earnings took a $13.7m hit related to a legal action by the consumer watchdog against The Good Guys over certain store credit and StoreCash promotions. At the flagship Australian JB Hi-Fi stores — which makes up the lion's share of sales — revenue rose 7.5 per cent to $7.1b, driven by continued high consumer demand, new product releases and strong promotional activity. Mobile phones, small appliances and computers continued to be the key growth areas. The launch of Nintendo Switch 2 in the fourth quarter also helped to lift sales of games hardware. Online sales are also becoming an increasingly more powerful revenue driver for JB Hi-Fi, increasing by 16.4 per cent to $1.19b — or 16.8 per cent of total sales — as shoppers embraced the click-and-collect offering. JB Hi-Fi also operates 23 stores in New Zealand, where sales increased 20.8 per cent to $NZ396.3m ($361.6m). Comparable sales — which excludes new stores — grew 9.2 per cent. Sales at The Good Guys rose 6.9 per cent to $2.87b, with comparable sales up 6.5 per cent. Last September, the group completed the acquisition of 75 per cent of e&s, which was described as a highly complementary premium home appliance and bathroom retailer. For the period of ownership, total sales were up 5.2 per cent to $225.2m. Commenting on his decision to leave, Mr Smart said he was proud of what had been achieved over the years. '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,' he said. JB Hi-Fi will pay out a final dividend of $1.05 a share, fully franked, up 2¢ and bringing the total ordinary dividend to $2.75. It will also pay out a special dividend of $1-a-share fully franked. And in more good news for investors, the company said it would up its payout ratio from 65 per cent to a range of between 70 and 80 per cent of after-tax profits.
USA Today
4 hours ago
- Sport
- USA Today
New Lakers guard Marcus Smart remembers his first game against Kobe Bryant
About a month ago, the Los Angeles Lakers started to make some improvements to their roster. They addressed their big void at the center position by signing Deandre Ayton, and they also added 23-year-old sharpshooting forward Jake LaRavia while re-signing center Jaxson Hayes. But they lacked defensive prowess and toughness, so later in July, they signed Marcus Smart after his contract was bought out by the Washington Wizards. Smart is just three years removed from winning the Defensive Player of the Year, and he has long been one of the NBA's best backcourt defenders. In a video that honored "NBA Defense Week," Smart talked about the first time he had to guard late Lakers great Kobe Bryant. "All I'm thinking is: My mom is watching me guarding Kobe," Smart said. "I hope somebody got a picture of this. In my mind, I'm like, 'Just live in this moment 'cause to be on the court with one of the all-time greats, is an honor, let alone to be guarding him.' "Now, to be a Laker with that mamba mentality, it just amplifies it." Smart's first matchup versus Bryant came during the 2015-16 season, which was his second in the NBA and Bryant's final campaign. In that game, he had the antidote to the venom of the "Black Mamba," as he held the Hall of Famer to 5-of-18 shooting from the field, although his Boston Celtics lost, 112-104. Even if Smart's defense will be diminished this coming season, he's still expected to make a significant impact on the Lakers with his ball-handling, playmaking, veteran leadership and overall resourcefulness. Somewhere, Bryant is surely smiling about the prospect of such a player joining the Purple and Gold.
Sky News AU
6 hours ago
- Business
- Sky News AU
Investors not buying JB Hi-Fi's big profits
Key Australian retail bellwether JB Hi-Fi has recorded hugely profitable full-year financial results. Results posted on Monday show JB Hi-Fi Australia sales rose 7.5 per cent for the year to $7.1bn, with profit rising 6 per cent despite tighter margins. Despite a higher final dividend and a special dividend for shareholders, investors were not convinced of the company's worth, with the share price losing 8 per cent in the first three hours of trading. JB Hi-Fi is a key indicator of consumer confidence in Australia; the $12.5bn company is the third-largest company on the ASX discretionaries sector. The share price fell on Monday morning after the company announced chief executive Terry Smart would be stepping down after 20 years in charge. The financial results were better than market expectations and bolstered by sales at premium home appliance retailer E&S, which the company bought in September. JB Hi-Fi Ltd also owns The Good Guys, which posted a 6.9 per cent lift in sales ($2.9bn) and an even fatter profit increase (to 8.2 per cent). The group's overall net profit was up 5.4 per cent (to $462.4m) but was dented after The Good Guys settled a lawsuit with the competition regulator for $13.7m over misleading statements about store credit. At JB Hi-Fi's Australian stores, increasing sales were driven by the new Nintendo Switch despite more discounting and promotions cutting into margins. Compared with the year prior, JB Hi-Fi New Zealand proved more profitable in all key measures. The outgoing chief executive also presented shareholders an increased dividend and a special dividend. 'It has been another strong year of sales and earnings, as we built on the momentum of the previous year,' Mr Smart said. 'The company stayed focused on its core proposition of driving great value and delivering consistently high levels of customer service which continued to resonate.' A final dividend of $1.05 was declared, bringing the total ordinary dividend to $2.75, a $0.14 increase on last year. JB Hi-Fi will also pay a fully franked $1 special dividend next month. Mr Smart began working for the company in 2000, took a short break and came back in 2017, revamped The Good Guys and was reappointed group chief executive in 2021. '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.' Chief operating officer Nick Wells will become chief executive, effective October 3. 'I have worked very closely with Nick for many years, particularly since my reappointment as group chief executive in 2021,' Mr Smart said. '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.' Chairman Stephen Goddard said under Mr Smart's leadership, sales and profit grew, and the share price hit record levels. 'We are sorry to see Terry go and wish him all the best for the future,' Mr Goddard said. Originally published as Investors not buying JB Hi-Fi's big profits
Herald Sun
6 hours ago
- Business
- Herald Sun
Investors not buying JB Hi-Fi's big profits
Don't miss out on the headlines from Companies. Followed categories will be added to My News. Key Australian retail bellwether JB Hi-Fi has recorded hugely profitable full-year financial results. Results posted on Monday show JB Hi-Fi Australia sales rose 7.5 per cent for the year to $7.1bn, with profit rising 6 per cent despite tighter margins. Despite a higher final dividend and a special dividend for shareholders, investors were not convinced of the company's worth, with the share price losing 8 per cent in the first three hours of trading. JB Hi-Fi is a key indicator of consumer confidence in Australia; the $12.5bn company is the third-largest company on the ASX discretionaries sector. The share price fell on Monday morning after the company announced chief executive Terry Smart would be stepping down after 20 years in charge. There are 206 JB Hi-Fi stores in Australia. This year, two have opened and one has closed. Picture: NewsWire / Jeremy Piper The financial results were better than market expectations and bolstered by sales at premium home appliance retailer E&S, which the company bought in September. JB Hi-Fi Ltd also owns The Good Guys, which posted a 6.9 per cent lift in sales ($2.9bn) and an even fatter profit increase (to 8.2 per cent). The group's overall net profit was up 5.4 per cent (to $462.4m) but was dented after The Good Guys settled a lawsuit with the competition regulator for $13.7m over misleading statements about store credit. At JB Hi-Fi's Australian stores, increasing sales were driven by the new Nintendo Switch despite more discounting and promotions cutting into margins. Compared with the year prior, JB Hi-Fi New Zealand proved more profitable in all key measures. The outgoing chief executive also presented shareholders an increased dividend and a special dividend. JB Hi-Fi chief executive Terry Smart is stepping down, again, this time retiring effective October 3. Picture: NewsWire / Ian Currie 'It has been another strong year of sales and earnings, as we built on the momentum of the previous year,' Mr Smart said. 'The company stayed focused on its core proposition of driving great value and delivering consistently high levels of customer service which continued to resonate.' A final dividend of $1.05 was declared, bringing the total ordinary dividend to $2.75, a $0.14 increase on last year. JB Hi-Fi will also pay a fully franked $1 special dividend next month. Mr Smart began working for the company in 2000, took a short break and came back in 2017, revamped The Good Guys and was reappointed group chief executive in 2021. '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.' Chief operating officer Nick Wells will become chief executive, effective October 3. 'I have worked very closely with Nick for many years, particularly since my reappointment as group chief executive in 2021,' Mr Smart said. '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.' Chairman Stephen Goddard said under Mr Smart's leadership, sales and profit grew, and the share price hit record levels. 'We are sorry to see Terry go and wish him all the best for the future,' Mr Goddard said. Originally published as Investors not buying JB Hi-Fi's big profits
