JB Hi-Fi Limited (ASX:JBH): Reaffirms Guidance, Brings Back Former CEO Terry Smart To Lead The Good Guys Brand
JB Hi-Fi Limited (ASX:JBH), Australia’s leading consumer electronics retailer, reaffirmed FY’17 guidance—$5.58 billion in revenue and net-profit-after-tax between $200 and $206 million, indicating a year-over-year increase of 31.4%–35.4%, boosted by $870 million late-2016 acquisition of The Good Guys – a white-goods retailer with more than 100 stores across Australia. It’s going to be a dividend bonanza for JBH shareholders, given that the company has assured distribution of nearly three-fifths of its earnings. In addition, the company announced the departure of Michael Ford, CEO of The Good Guys. Former JBH CEO Terry Smart will be returning to run The Good Guys brand, which is expected to account for nearly 22% of JBH’s FY’17 revenue. For JB Hi-Fi brand, strong comparable sales (comps) growth continued as comps grew 8.2% for the quarter to Mar’17, while total sales rose 10.8%, compared to the year-ago-quarter. Comps for The Good Guys brand grew 1.2% during the quarter and total sales were up 2.6% — a turnaround from contracting sales before it became a part of JBH. The return of an experienced leader, and another strong quarter, lifted JBH shares almost 4% this Thursday.