Large electronics and appliances retailer JB Hi-Fi [ASX:JBH] held its annual general meeting (AGM) and released a brief 1Q23 sales update, showing 1Q23 total sales rose strongly on 1Q22 for all key segments.
JBH shares were flat on the news.
JB Hi-Fi stock is down 15% in the past six months.
Source: Trading View
JB Hi-Fi 1Q23 sales rise across segments
JB Hi-Fi provided the market a sales update for the three months to September (1Q23):
▪ Total sales growth for JB HI-FI Australia is up 14.6% on 1Q22, comparable sales growth up 14.2%
▪ Total sales growth for JB HI-FI New Zealand is up 27.7% on 1Q22, comparable sales growth up 27.7%
▪ Total sales growth for The Good Guys is up 12.3% on 1Q22, comparable sales growth up 12.3%
JBH CEO Terry Smart commented on the retailer’s start to FY23:
‘We are pleased with the start to FY23, with continued sales momentum and strong sales growth rates over a three-year period.
‘In an uncertain retail environment and with household budgets under increasing pressure, customers gravitate to trusted value-driven retailers. Our ongoing strategy of providing customers with the best value and outstanding service every day, will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.
‘I look forward to another exciting and successful year in FY23.’
JBH board touts track record
JB Hi-Fi senior management took this week’s AGM as an opportunity to talk up the retailer’s track record in creating shareholder value.
Since listing in October 2003, management noted that JHB shares rose at a compound annual growth rate of 18.5% to 26 October 2022.
The ASX rose at a compound annual growth rate of 3.9%.
JBH also pointed out that its earnings per share (EPS) growth have compounded annually at a growth rate of 22% since 2003.
Interestingly, however, the tight link between EPS growth and share price growth has unwound in recent years.
The JBH share price has compounded at an annual growth rate of 4.8% since 2019 despite its EPS compounding at an annual growth rate of 30.2%.
Source: JBH
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