JB Hi-Fi Recovers On ASX
JB Hi Fi shares, which tumbled nine percent on Wednesday, reflecting problems with assimilation of the Good Guys home appliance chain, recovered on the ASX yesterday, finishing the day at $23.65, up 37c, but still well below the peak of $29.23 recorded in January.
Wednesday’s plunge had followed the revelation that JB had cut its forecast for a net profit of $235 million to just $230 million.
JB had acquired The Good Guys in September 2016 in an $870 million deal, and forecast $20 million in synergies over two years.
CEO Richard Murray this week told a Sydney conference that a warm start to winter and discounting had weighed on The Good Guys’ profit margins.