Weak Good Guys' sales take shine off JB Hi-Fi; Morningstar flags valuation concerns

JB Hi-Fi

30/10/2025 18:59

** Analysts at Morningstar say sales at Australia's JB Hi-Fi's JBH.AX home appliances operation was relatively weak and dragged on an otherwise solid Q1

** Home appliances specialist The Good Guys reported a meager 3% sales rise as opposed to a 6% and 39% gain at JBH's Australia and New Zealand segments, respectively

** Morningstar flags shares in JBH are materially overvalued as compared to its A$45.50 fair value estimate; believes market is overly optimistic about the retailer's long-term profitability

** Forecasts co's EBIT margins to average 6.1% over the next five years as compared to 6.7% in FY25

** Adds consumer electronics are highly commoditized, and physical stores are increasingly competing with online pure plays

** Shares closed near 5% lower at A$108.45; stock up 18% YTD

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com))